Asked by Imuetiyan Eweka on Apr 27, 2024
Verified
The labor rate variance for May is:
A) $6,460 U
B) $6,118 U
C) $6,118 F
D) $6,460 F
Labor Rate Variance
The difference between the actual labor costs incurred and the expected (or standard) labor costs for the production achieved.
May
Not a term that needs defining within the given context.
- Examine and understand variations in labor rate discrepancies.
Verified Answer
MB
Miles BridgettApr 29, 2024
Final Answer :
C
Explanation :
Labor rate variance = (AH × AR)− (AH × SR)
= (3,220 hours × $22.10 per hour)− (3,220 hours × $24.00 per hour)
= $71,162 − $77,280
= $6,118 F
Reference: CH09-Ref61
Wolery Inc.has provided the following data concerning one of the products in its standard cost system.
The company has reported the following actual results for the product for April: 
= (3,220 hours × $22.10 per hour)− (3,220 hours × $24.00 per hour)
= $71,162 − $77,280
= $6,118 F
Reference: CH09-Ref61
Wolery Inc.has provided the following data concerning one of the products in its standard cost system.
The company has reported the following actual results for the product for April: 
Learning Objectives
- Examine and understand variations in labor rate discrepancies.