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16 June, 01:50

Problem 10-171 The following labor standards have been ... The following labor standards have been established for a particular product: Standard labor hours per unit of output 4.5 hours Standard labor rate $19.70 per hours The following data pertain to operations concerning the product for the last month: Actual hours worked 6,500 hours Actual total labor cost $130,975 Actual output 1,400 units Required: a. What is the labor rate variance for the month

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  1. 16 June, 02:15
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    Labour rate variance $2,925 unfavorable

    Explanation:

    The labour rate variance is the difference between the standard labour cost allowed for the actual hours worked and the actual labor cost for the same hours

    $

    Standard labour cost ($19.70 * 6500) 128,050

    Actual labour cost 130,975

    Labour rate variance 2,925 unfavorable
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