The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor rate variance for the month?

Question

The following labor standards have been established for a particular product:  The following data pertain to operations concerning the product for the last month:  What is the labor rate variance for the month?

Quizplus · Accepted Answer

AH × AR = $50, 690
Labor rate variance = (AH × AR)- (AH × SR)
= $50, 690 - (3, 700 hours × $14.05 per hour)
= $50, 690 - ($51, 985)
= $1, 295 F

The Following Labor Standards Have Been Established for a Particular