Asked by Donald R. Johnson on Apr 27, 2024
Verified
The labor rate variance for the month is closest to:
A) $2,576 U
B) $2,816 U
C) $2,816 F
D) $2,576 F
Labor Rate Variance
The difference between the actual hourly wage paid to workers and the standard or expected wage rate, multiplied by the total hours worked.
- Analyze and decode shifts in labor charge rates.
Verified Answer
AP
Ashley PerrineMay 03, 2024
Final Answer :
A
Explanation :
Labor rate variance = (AH × AR)− (AH × SR)
= AH × (AR - SR)
= 1,610 hours × ($23.30 per hour - $21.70 per hour)
= 1,610 hours × ($1.60 per hour)
= $2,576 U
= AH × (AR - SR)
= 1,610 hours × ($23.30 per hour - $21.70 per hour)
= 1,610 hours × ($1.60 per hour)
= $2,576 U
Learning Objectives
- Analyze and decode shifts in labor charge rates.