Barbu Corporation has provided the following data concerning its direct labor costs for June: The Labor Rate Variance for June would be recorded as a:
A)credit of $6,305.
B)credit of $6,500.
C)debit of $6,305.
D)debit of $6,500.

Question

Barbu Corporation has provided the following data concerning its direct labor costs for June:  The Labor Rate Variance for June would be recorded as a:
A)credit of $6,305. 
B)credit of $6,500. 
C)debit of $6,305. 
D)debit of $6,500.

Quizplus · Accepted Answer

Labor rate variance = AH × (AR - SR)
= 12,610 hours × ($12.70 per hour - $13.20 per hour)
= 12,610 hours × (-$0.50 per hour)
= $6,305 F
Favorable variances are credite

Barbu Corporation Has Provided the Following Data Concerning Its Direct