Tout Corporation makes a product that has the following direct labor standards: The company budgeted for production of 6,400 units in October,but actual production was 6,500 units.The company used 610 direct labor-hours to produce this output.The actual direct labor rate was $21.80 per hour. The labor rate variance for October is:

Question

Tout Corporation makes a product that has the following direct labor standards:  The company budgeted for production of 6,400 units in October,but actual production was 6,500 units.The company used 610 direct labor-hours to produce this output.The actual direct labor rate was $21.80 per hour. The labor rate variance for October is:

Quizplus · Accepted Answer

Labor rate variance = AH × (AR - SR)
= 610 hours × ($21.80 per hour - $22.00 per hour)
= 610 hours × (-$0.20 per hour)
= $122 F

Tout Corporation Makes a Product That Has the Following Direct