Michael Corporation manufactures railroad cars,which is its only product.The standards for railroad cars are as follows:

During the month of March,the company produced 1,650 railroad cars.Related production data for the month follows:

What is the direct labor rate variance for the month?

Question

Michael Corporation manufactures railroad cars,which is its only product.The standards for railroad cars are as follows:

During the month of March,the company produced 1,650 railroad cars.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
$15,000 F = ({$985,000 / 50,000} - $20)× 50,000

Michael Corporation Manufactures Railroad Cars,which Is Its Only Product