Assume that the standard cost to make one finished unit includes 1 hour of direct labor at $4 per hour. During March, 11,000 direct labor-hours were worked, 5,250 units of product were manufactured, and total direct labor cost was $40,000.
What is the labor rate variance for April?
A) $2,000 (U)
B) $2,000 (F)
C) $4,000 (U)
D) $4,000 (F)

Question

Quizplus · Accepted Answer

(11,000 x $4) - $40,000 = $4,000 (F)

Assume That the Standard Cost to Make One Finished Unit