Davidson Corporation makes a product that has the following direct labor standards:
In September the company produced 4,900 units using 2,210 direct labor-hours. The actual direct labor rate was $22.40 per hour.

-The labor rate variance for September is:
A)$1,470 U
B)$1,326 U
C)$1,326 F
D)$1,470 F

Question

Davidson Corporation makes a product that has the following direct labor standards:
  In September the company produced 4,900 units using 2,210 direct labor-hours. The actual direct labor rate was $22.40 per hour.

-The labor rate variance for September is:
A)$1,470 U 
B)$1,326 U 
C)$1,326 F 
D)$1,470 F

Quizplus · Accepted Answer

Labor rate variance = AH(AR - SR)
= 2,210 hours ($22.40 per hour - $23.00 per hour)
= 2,210 hours (-0.60 per hour)= $1,326 F

Davidson Corporation Makes a Product That Has the Following Direct