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Albertson Fabricators has established the following labor standards for a particular product: Standard labor-hours per unit of output 8.7 hours Standard labor rate $15.60 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 8,600 hours Actual total labor cost $131,580 Actual output 850 units What is the labor rate variance for the month

Respuesta :

Answer:

the labor rate variance is $2,580 unfavorable

Explanation:

The computation of the labor rate variance is shown below:

= Actual labor cost - (standard rate × actual hours)

= $131,580 - ($15.60 × 8,600 hours)

= $131,580 - $134,160

= $2,580 unfavorable

Hence, the labor rate variance is $2,580 unfavorable

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