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