Valley View Company produces hiking boots.The direct labor standard for each pair of boots is 1 hour at a cost of $20.00 per direct labor hour.During the month of May,Valley View Company used 2,500 direct labor hours to produce 2,350 pairs of boots.Total direct labor cost for May was $48,000.What is the labor rate variance for May?

Question

Quizplus · Accepted Answer

A)
Labor rate variance = (Actual rate per hour - Standard rate per hour)× actual hours
$2,000F = ({$48,000 / 2,500} - $20.00)× 2,500

Valley View Company Produces Hiking Boots