The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month:

-What is the labor rate variance for the month?
A)$400 F
B)$80 U
C)$80 F
D)$400 U

Question

The following labor standards have been established for a particular product:  The following data pertain to operations concerning the product for the last month:

-What is the labor rate variance for the month?
A)$400 F 
B)$80 U 
C)$80 F 
D)$400 U

Quizplus · Accepted Answer

Labor rate variance = (AH F1F1F1S1F1F1F10 AR)- (AH F1F1F1S1F1F1F10 SR)
= $10,600 - (1,000 hours F1F1F1S1F1F1F10 $10.20 per hour)
= $10,600 - $10,200 = $400 U

The Following Labor Standards Have Been Established for a Particular