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?
A) $11,160 F
B) $13,320 U
C) $11,160 U
D) $2,430 F

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?
A) $11,160 F 
B) $13,320 U 
C) $11,160 U 
D) $2,430 F

Quizplus · Accepted Answer

AH × AR = $119,880
Labor rate variance = (AH × AR) - (AH × SR)
= $119,880 - (8,100 hours × $15.10 per hour)
= $119,880 - ($122,310)
= $2,430 F

The Following Labor Standards Have Been Established for a Particular