The following labor standards have been established for a pa

The following labor standards have been established for a particular product:

The following data pertain to operations concerning the product for the last month:

What is the labor rate variance for the month?

$1,295 F

$2,877 F

$4,246 F

$4,246 U

Standard labor-hours per unit of output	1.7	hours
Standard labor rate	$14.05	per hour

Solution

Actual Hours worked: 3700 hours Std rate per hour: $ 14.05 per hour Actual rate per hour (50690/3700 hours): $ 13.70 per hour labour rate variance: Actual hours (Std rate per hour-Actual rate per hour) 3700 hours (14.05-13.70)= $ 1295 Fav