Assume the following: . The standard labor rate per hour is $17.30. • The standard labor-hours allowed per unit of finished goods is 3 hours. • The actual quantity of labor hours worked during the period was 44,000 hours. • The total actual direct labor cost for the period was $726,000. • The company produced 15,000 units of finished goods during the period. What is the labor rate variance? Multiple Choice O O $33,200 U $33,200 F $35,200 U
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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