Flapjack Corporation had 7,809 actual direct labor hours at an actual rate of $12.40 per hour. Original production had been budgeted for 1,100 units, but only 970 units were actually produced. Labor standards were 7.4 hours per completed unit at a standard rate of $12.79 per hour. The direct labor rate variance is: a. $3,045.51 unfavorable b. $3,045.51 favorable m c. $8,120.12 unfavorable d. $8,120.12 favorable

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 2BE: Direct labor variances Bellingham Company produces a product that requires 4 standard direct labor...
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Flapjack Corporation had 7,809 actual
direct labor hours at an actual rate of $12.40
per hour. Original production had been
budgeted for 1,100 units, but only 970 units
were actually produced. Labor standards
were 7.4 hours per completed unit at a
standard rate of $12.79 per hour. The direct
labor rate variance is:
a. $3,045.51 unfavorable
b. $3,045.51 favorable
m
c. $8,120.12 unfavorable
d. $8,120.12 favorable
Transcribed Image Text:Flapjack Corporation had 7,809 actual direct labor hours at an actual rate of $12.40 per hour. Original production had been budgeted for 1,100 units, but only 970 units were actually produced. Labor standards were 7.4 hours per completed unit at a standard rate of $12.79 per hour. The direct labor rate variance is: a. $3,045.51 unfavorable b. $3,045.51 favorable m c. $8,120.12 unfavorable d. $8,120.12 favorable
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