The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor rate variance for the month?

Question

The following labor standards have been established for a particular product:  The following data pertain to operations concerning the product for the last month:  What is the labor rate variance for the month?

Quizplus · Accepted Answer

AH × AR = $144, 480
Labor rate variance = (AH × AR)- (AH × SR)
= ($144, 480)- (9, 600 hours × $15.25 per hour)
= $144, 480 - $146, 400
= $1, 920 F

The Following Labor Standards Have Been Established for a Particular