Asked by Tommy Dorfman on Jul 26, 2024
Verified
The labour rate variance for November was?
A) $2,150 U.
B) $550 U.
C) $1,050 U.
D) $2,150 F.
Labour Rate Variance
The difference between the actual cost of direct labor and the standard cost of direct labor multiplied by the actual hours worked.
Direct Labour
Rephrased: The workforce directly involved in manufacturing products or providing services, whose costs directly affect the cost of goods sold.
Variable Manuf. Overhead
Variable Manufacturing Overhead includes those manufacturing overhead costs that vary directly with the level of production, such as utilities for the production facility.
- Determine variances related to material and labor, including those associated with price, quantity, rate, and efficiency.
Verified Answer
RJ
Ryan James BayerAug 01, 2024
Final Answer :
B
Explanation :
The labor rate variance is calculated as (Actual Rate - Standard Rate) x Actual Hours = ($8.25 - $8) x 2,200 hours = $0.25 x 2,200 = $550 Unfavorable.
Learning Objectives
- Determine variances related to material and labor, including those associated with price, quantity, rate, and efficiency.