The Perfect Tool Company (South America Division) produced 80,000 saw blades during the year.It took 1.5 hours of labor per blade at a rate of $8.50 per hour.However, its standard labor rate is $8.00.Its labor efficiency variance was an unfavorable $40,000.
- What is Perfect's labor rate variance?
A) $57,500 U
B) $57,500 F
C) $60,000 U
D) $60,000 F

Question

The Perfect Tool Company (South America Division) produced 80,000 saw blades during the year.It took 1.5 hours of labor per blade at a rate of $8.50 per hour.However, its standard labor rate is $8.00.Its labor efficiency variance was an unfavorable $40,000.  
-  What is Perfect's labor rate variance?
A) $57,500 U
B) $57,500 F
C) $60,000 U
D) $60,000 F

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The Perfect Tool Company (South America Division) Produced 80,000 Saw