Bonnot Corporation makes a product that has the following direct labor standards: The company budgeted for production of 2,100 units in October, but actual production was 1,900 units. The company used 410 direct labor-hours to produce this output. The actual direct labor rate was $20.60 per hour.
-The labor rate variance for October is:
A)$164 F
B)$164 U
C)$152 U
D)$152 F

Question

Bonnot Corporation makes a product that has the following direct labor standards:  The company budgeted for production of 2,100 units in October, but actual production was 1,900 units. The company used 410 direct labor-hours to produce this output. The actual direct labor rate was $20.60 per hour.
-The labor rate variance for October is:
A)$164 F 
B)$164 U 
C)$152 U 
D)$152 F

Quizplus · Accepted Answer

Labor rate variance = AH(AR - SR)
= 410 hours ($20.60 per hour - $21.00 per hour)
= 410 hours (-$0.40 per hour)= $164 F

Bonnot Corporation Makes a Product That Has the Following Direct