Beakins Corporation produces a single product.The standard cost card for the product follows: During a recent period the company produced 1, 200 units of product.Various costs associated with the production of these units are given below: The company records all variances at the earliest possible point in time.Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The labor rate variance for the period is:

Question

Beakins Corporation produces a single product.The standard cost card for the product follows:  During a recent period the company produced 1, 200 units of product.Various costs associated with the production of these units are given below:  The company records all variances at the earliest possible point in time.Variable manufacturing overhead costs are applied to products on the basis of standard direct labor-hours. The labor rate variance for the period is:

Quizplus · Accepted Answer

AH × AR = $17, 850
Labor rate variance = (AH × AR)- (AH × SR)
= ($17, 850)- (2, 100 hours × $10.00 per hour)
= $17, 850 - $21, 000
= $3, 150 F

Beakins Corporation Produces a Single Product