Jurczyk Corporation makes a product that has the following direct labor standards: In December the company's budgeted production was 4, 600 units, but the actual production was 4, 400 units.The company used 1, 330 direct labor-hours to produce this output.The actual direct labor cost was $14, 364. The labor rate variance for December is:

Question

Jurczyk Corporation makes a product that has the following direct labor standards:  In December the company's budgeted production was 4, 600 units, but the actual production was 4, 400 units.The company used 1, 330 direct labor-hours to produce this output.The actual direct labor cost was $14, 364. The labor rate variance for December is:

Quizplus · Accepted Answer

AH × AR = $14, 364
Labor rate variance = (AH × AR)- (AH × SR)
= ($14, 364)- (1, 330 hours × $11.00 per hour)
= $14, 364 - $14, 630
= $266 F

Jurczyk Corporation Makes a Product That Has the Following Direct