Anemone Company produces picture frames. During the year, 200,000 picture frames were produced. Materials and labor standards for producing the picture frames are as follows: Direct materials (2 pieces of wood @ $3)$6.00Direct labor (2 hours @ $12)$24.00Anemone purchased and used 600,000 pieces of wood at $4.00 each, and its actual labor hours were 320,000 hours at a wage rate of $13. What is Anemone's labor rate variance?a.$450,000 Fb.$320,000 Uc.$445,000 Ud.$660,500 F

Labor Rate Variance = ( Standard rate - Actual rate ) * Actual hours

Answered: Anemone Company produces picture…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Anemone Company produces picture frames. During the year, 200,000 picture frames were produced. Materials and labor standards for producing the picture frames are as follows:

Direct materials (2 pieces of wood @ $3)	$6.00
Direct labor (2 hours @ $12)	$24.00

Anemone purchased and used 600,000 pieces of wood at $4.00 each, and its actual labor hours were 320,000 hours at a wage rate of $13.

What is Anemone's labor rate variance?

$450,000 F

$320,000 U

$445,000 U

$660,500 F

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