Madden Corporation manufactures t-shirts,which is its only product.The standards for t-shirts are as follows:

During the month of January,the company produced 1,250 t-shirts.Related production data for the month follows:

What is the direct labor rate variance for the month?

Question

Madden Corporation manufactures t-shirts,which is its only product.The standards for t-shirts are as follows:

During the month of January,the company produced 1,250 t-shirts.Related production data for the month follows:

What is the direct labor rate variance for the month?

Quizplus · Accepted Answer

A)
Labor rate variance = (Actual rate per hour - Standard rate per hour)× actual hours
$90 F = ({$13,000 / 770} - $17)× 770

Madden Corporation Manufactures T-Shirts,which Is Its Only Product