product requires 0.60 standard labor hours, the standard labor rate is $10 per hour, and production was 300 units. Actual labor cost was $1,862 at $9.80 per hour. Which of the following is true? a. The labor rate variance was $98 favorable. b. The labor efficiency variance was $62 unfavorable. c. The labor efficiency variance was $100 unfavorable. d. The labor rate variance was $62 unfavorable.
product requires 0.60 standard labor hours, the standard labor rate is $10 per hour, and production was 300 units. Actual labor cost was $1,862 at $9.80 per hour. Which of the following is true? a. The labor rate variance was $98 favorable. b. The labor efficiency variance was $62 unfavorable. c. The labor efficiency variance was $100 unfavorable. d. The labor rate variance was $62 unfavorable.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 8E: Direct labor variances The following data relate to labor cost for production of 20,000 cellular...
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A product requires 0.60 standard labor hours, the standard labor rate is $10 per hour, and production was 300 units. Actual labor cost was $1,862 at $9.80 per hour. Which of the following is true?
a. The labor rate variance was $98 favorable.
b. The labor efficiency variance was $62 unfavorable.
c. The labor efficiency variance was $100 unfavorable.
d. The labor rate variance was $62 unfavorable.
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