LR Kinncaid Company assembles steel components for trains.The standard labour cost per unit is:
3 hours @ £3.20 per hour
The actual results for last period were:
$$\begin{array} { l l }
\text { Production } & 6,000 \text { components } \
\text { Hours } & 33,000 \
\text { Wage rate (per hour) } & £ 3.25
\end{array}$$
Calculate the direct labour rate variance

Question

LR Kinncaid Company assembles steel components for trains.The standard labour cost per unit is:
3 hours @ £3.20 per hour
The actual results for last period were:
$$\begin{array} { l l } 
\text { Production } & 6,000 \text { components } \
\text { Hours } & 33,000 \
\text { Wage rate (per hour) } & £ 3.25
\end{array}$$
Calculate the direct labour rate variance

Quizplus · Accepted Answer

The direct labour rate variance is calculated as (Actual Rate - Standard Rate) x Actual Hours = (3.25 - 3.20) x 33,000 = 0.05 x 33,000 = £1,650 adverse.

LR Kinncaid Company Assembles Steel Components for Trains Calculate the Direct Labour Rate Variance A) £48,000 Favorable B)

LR Kinncaid Company Assembles Steel Components for Trains Calculate the Direct Labour Rate Variance
A) £48,000 Favorable
B)