Gilder Corporation makes a product with the following standard costs: The company reported the following results concerning this product in June. 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 June is:

Question

Gilder Corporation makes a product with the following standard costs:  The company reported the following results concerning this product in June.  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 June is:

Quizplus · Accepted Answer

AH × AR = $7, 803
Labor rate variance = (AH × AR)- (AH × SR)
= ($7, 803)- (510 hours × $16.00 per hour)
= $7, 803 - $8, 160
= $357 F

Gilder Corporation Makes a Product with the Following Standard Costs