Electric Zero produces relay units for generators. Each relay has a standard cost of $67. Standards call for two relays per generator. In July, the company purchased 120 relays for $7,560. The company used 104 relays in the production of 50 generators, with four relays damaged in the installation process. The standard quantity of labor is 20 hours per generator, with a standard wage rate of $24.10. In July, the company incurred 1,150 labor hours at a cost of $24,350. How much is the labor rate variance?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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How much is the labour rate variance?

Electric Zero produces relay units for generators. Each relay has a
standard cost of $67. Standards call for two relays per generator. In
July, the company purchased 120 relays for $7,560. The company
used 104 relays in the production of 50 generators, with four relays
damaged in the installation process. The standard quantity of labor
is 20 hours per generator, with a standard wage rate of $24.10. In
July, the company incurred 1,150 labor hours at a cost of $24,350.
How much is the labor rate variance?
Transcribed Image Text:Electric Zero produces relay units for generators. Each relay has a standard cost of $67. Standards call for two relays per generator. In July, the company purchased 120 relays for $7,560. The company used 104 relays in the production of 50 generators, with four relays damaged in the installation process. The standard quantity of labor is 20 hours per generator, with a standard wage rate of $24.10. In July, the company incurred 1,150 labor hours at a cost of $24,350. How much is the labor rate variance?
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