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) $450 F
B) $3,915 F
C) $3,915 U
D) $450 U

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) $450 F 
B) $3,915 F 
C) $3,915 U 
D) $450 U

Quizplus · Accepted Answer

AH × AR = $129,195
Labor rate variance = (AH × AR) − (AH × SR)
= ($129,195) − (8,700 hours × $14.40 per hour)
= $129,195 − $125,280
= $3,915 U

The Following Labor Standards Have Been Established for a Particular