Taccone Corporation makes a product that has the following direct labor standards: In February the company produced 4, 100 units using 1, 120 direct labor-hours.The actual direct labor rate was $20.40 per hour. The labor rate variance for February is:

Question

Taccone Corporation makes a product that has the following direct labor standards:  In February the company produced 4, 100 units using 1, 120 direct labor-hours.The actual direct labor rate was $20.40 per hour. The labor rate variance for February is:

Quizplus · Accepted Answer

Labor rate variance = (AH × AR)- (AH × SR)
= (1, 120 hours × $20.40 per hour)- (1, 120 hours × $20.00 per hour)
= $22, 848 - $22, 400
= $448 U

Taccone Corporation Makes a Product That Has the Following Direct