Clark Company manufactures a product with a standard direct labor cost of two hours at $18.00 per hour. During July 2000 units were produced using 4200 hours at $18.30 per hour. The labor quantity variance was
A) $3660 F.
B) $3600 U.
C) $2460 U.
D) $3660 U.

Question

Quizplus · Accepted Answer

The labor quantity variance is calculated as (Actual Hours - Standard Hours) x Standard Rate. Here, (4200 - 4000) x $18 = $3600 Unfavorable.

Clark Company Manufactures a Product with a Standard Direct Labor