Exhibit 10-3
Glenbrook Inc.has the following standard costs the one product the company produces.
Direct Materials (2 pounds at $18.00 per pound)= $36.00 per unit
Direct Labor (0.6 hours at $48.00 per hour)= $28.80 per unit
During March,Glenbrook produced 2,000 units,bought and used 4,200 pounds of direct materials at $19.20 per pound,and used 1,100 hours of labor at a total cost of $56,100.
-Refer to Exhibit 10-3.Based on this information,what is the direct labor rate variance?
A)$3,600 unfavorable
B)$3,600 favorable
C)$3,300 favorable
D)$3,300 unfavorable
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

- The actual hours of labor used = 1,100 hours
- The actual cost of labor = $56,100
- The actual rate of labor = Actual cost of labor / Actual hours of labor = $56,100 / 1,100 = $51 per hour
- The standard rate of labor = $48 per hour
- Direct labor rate variance = (Actual rate - Standard rate) x Actual hours of labor
- Direct labor rate variance = ($51 - $48) x 1,100 = $3,300 unfavorable. 
Therefore, the answer is D) $3,300 unfavorable.

Exhibit 10-3 Glenbrook Inc.has the Following Standard Costs the One Product the Product