Fabiano Corporation makes a product whose direct labor standards are 0.5 hours per unit and $23.00 per hour. In February the company produced 3,300 units using 1,640 direct labor-hours. The actual direct labor cost was $38,540.
-The labor rate variance for February is:
A)$825 U
B)$820 U
C)$820 F
D)$825 F

Question

Quizplus · Accepted Answer

Labor rate variance = (AQ F1F1F1S1F1F1F10 AP)- (AQ F1F1F1S1F1F1F10 SP)
= $38,540 - (1,640 hours F1F1F1S1F1F1F10 $23.00 per hour)
= $38,540 - $37,720
= $820 U

Fabiano Corporation Makes a Product Whose Direct Labor Standards Are