Chhom Corporation makes a product whose direct labor standards are 0.4 hours per unit and $19.00 per hour. In November the company produced 1,800 units using 760 direct labor-hours. The actual direct labor cost was $13,300. The labor rate variance for November is:
A) $1,080 F
B) $1,140 U
C) $1,080 U
D) $1,140 F

Question

Quizplus · Accepted Answer

AH × AR = $13,300
Labor rate variance = (AH × AR) − (AH × SR)
= ($13,300) − (760 hours × $19.00 per hour)
= $13,300 − $14,440
= $1,140 F

Chhom Corporation Makes a Product Whose Direct Labor Standards Are