Question 3 The following labor standards have been establish

Question 3 The following labor standards have been established for a particular product: Not yet answered Points out of 3 Standard labor-hours per unit of output Standard labor rate $ Flag question 9.0 hours 15.10 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked Actual total labor cost Actual output 8,100 hours 119,880 800 units

Solution

Answer is $2,430 F

Actual labor cost = $119,880
Actual hours worked = 8,100
Standard labor rate = $15.10 per hour

Labor Rate Variance = Actual labor cost - Actual hours worked * Standard labor rate
Labor Rate Variance = $119,880 - 8,100 * $15.10
Labor Rate Variance = $2,430 Favorable