Berends Corporation makes a product with the following standard costs: The company reported the following results concerning this product in April. The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for April is:

Question

Berends Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in April.  The company applies variable overhead on the basis of direct labor-hours.The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for April is:

Quizplus · Accepted Answer

Labor rate variance = (AH × AR)- (AH × SR)
= ($39, 424)- (2, 560 hours × $17.00 per hour)
= $39, 424 - $43, 520
= $4, 096 F

Berends Corporation Makes a Product with the Following Standard Costs