The Hanson Corporation employs a standard costing system.The following data are available for February: The actual direct labor rate for February is:

Question

The Hanson Corporation employs a standard costing system.The following data are available for February:  The actual direct labor rate for February is:

Quizplus · Accepted Answer

Labor rate variance = AH × (AR - SR)
$2,600 F = 6,500 hours × (AR - $8 per hour)
-$2,600 = 6,500 hours × (AR - $8 per hour)
-$2,600 = (6,500 hours × AR)- (6,500 hours × $8 per hour)
-$2,600 = (6,500 hours × AR)- ($52,000)
6,500 hours × AR = $52,000 - $2,600
6,500 hours × AR = $49,400
AR = $49,400 ÷ 6,500 hours
AR = $7.60 per hour

The Hanson Corporation Employs a Standard Costing System