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a job was budgeted to require 2 hours of labor per unit at $11.00 per hour. the job consisted of 8,500 units and was completed in 16,000 hours at a total labor cost of $189,100. what is the total direct labor variance?

Respuesta :

The total direct labor variance for the job  will be -$2100.

What is direct labor variance?

Direct labor cost variance is the difference between the standard cost for actual production and the actual cost in production. There are two kinds of labor variances. Labor Rate Variance  and Labor efficiency variance.

The direct labor variance is calculated as:-

Given,

Time = 2 hours

Cost of labor = $11.00

Number of units = 8,500

Total actual labor cost = $189,100.

Standard labor cost = 8,500 × 2 × $11.00 = $187,000

Total labor cost variance = Standard labor cost  - Actual labor cost

Total labor cost variance = $187,000  - $189,100

Total labor cost variance = -$2,100

Here negative sign represents the unfavorable amount.

Therefore, the total labor cost variance is $2,100 unfavorable.

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