Irvin Racquet Company produces tennis racquets.The direct labor standard for each racquet is 0.50 hours at a cost of $22.00 per direct labor hour.During the month of April,Irvin Racquet Company used 4,200 direct labor hours to produce 2,350 racquets.Total direct labor cost for April was $91,350.What is the labor price (rate)variance for Irvin Racquet Company for April?

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Quizplus · Accepted Answer

The labor price (rate) variance is calculated as follows:Labor price (rate) variance = (Actual labor rate - Standard labor rate) x Actual labor hoursActual labor rate = Total direct labor cost / Actual labor hours= $91,350 / 4,200 hours= $21.75 per hourStandard labor rate = $22.00 per hourActual labor hours = 4,200 hoursLabor price (rate) variance = ($21.75 - $22.00) x 4,200 hours= -$0.25 x 4,200 hours= -$1,050Therefore, the labor price (rate) variance for Irvin Racquet Company for April is $1,050 unfavorable.

Irvin Racquet Company Produces Tennis Racquets