The Hanson Corporation employs a standard costing system.The following data are available for February: The actual direct labor rate for February is:

Question

The Hanson Corporation employs a standard costing system.The following data are available for February:  The actual direct labor rate for February is:

Quizplus · Accepted Answer

Labor rate variance = AH × (AR - SR)
$2, 600 F = 6, 500 hours × (AR - $8 per hour)
-$2, 600 = 6, 500 hours × (AR - $8 per hour)
-$2, 600 = (6, 500 hours × AR)- (6, 500 hours × $8 per hour)
-$2, 600 = (6, 500 hours × AR)- ($52, 000)
6, 500 hours × AR = $52, 000 - $2, 600
6, 500 hours × AR = $49, 400
AR = $49, 400 ÷ 6, 500 hours
AR = $7.60 per hour

The Hanson Corporation Employs a Standard Costing System