Asked by Manisha Reddy on Jul 05, 2024
Verified
The labor rate variance for the month is closest to:
A) $5,746 U
B) $6,069 F
C) $5,746 F
D) $6,069 U
Labor Rate Variance
A metric that calculates the difference between the actual and expected cost of labor.
- Review and comprehend divergences in wage rate variances.
Verified Answer
TA
Tanaijah AustinJul 08, 2024
Final Answer :
A
Explanation :
Labor rate variance = (AH × AR)? (AH × SR)
= $74,698 ? (3,380 hours × $20.40 per hour)
= $74,698 ? $68,952
= $5,746 U
= $74,698 ? (3,380 hours × $20.40 per hour)
= $74,698 ? $68,952
= $5,746 U
Learning Objectives
- Review and comprehend divergences in wage rate variances.