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Falcon Tech Ltd manufactures a product that requires 2.8 hours of labor per unit as per the standard. The standard labor rate is $6.00 per hour. During the period, the company actually used 2.7 hours of labor per unit, and the actual labor rate was $5.80 per hour. The company produced 1,200 units during the period. What is the labor price variance?

Falcon Tech Ltd manufactures a product that requires 2.8 hours of labor per unit as per the standard. The standard labor rate is $6.00 per hour. During the period, the company actually used 2.7 hours of labor per unit, and the actual labor rate was $5.80 per hour. The company produced 1,200 units during the period. What is the labor price variance?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid...
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Falcon Tech Ltd manufactures a product that requires 2.8 hours of labor per unit as per the standard. The standard labor rate is $6.00 per hour. During the period, the company actually used 2.7 hours of labor per unit, and the actual labor rate was $5.80 per hour. The company produced 1,200 units during the period. What is the labor price variance?
Transcribed Image Text:Falcon Tech Ltd manufactures a product that requires 2.8 hours of labor per unit as per the standard. The standard labor rate is $6.00 per hour. During the period, the company actually used 2.7 hours of labor per unit, and the actual labor rate was $5.80 per hour. The company produced 1,200 units during the period. What is the labor price variance?
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