contestada

Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassock’s standard labor cost is $14 per hour. During August, Hassock produced 12,000 units and used 24,200 hours of direct labor at a total cost of $335,100. What is Hassock’s labor rate variance for August?

Respuesta :

facundobuzzetti

Answer:

Direct labor rate variance= $3,630 favorable

Explanation:

Giving the following information:

Standard production= 2 hours per unit

Standard labor cost= 14 per hour.

During August, Hassock produced 12,000 units and used 24,200 hours of direct labor at a total cost of $335,100.

To calculate the direct labor rate variance, we need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 335,100/24,200= $13.85

Direct labor rate variance= (14 - 13.85)*24,200= $3,630 favorable

Otras preguntas