Horizon Manufacturing makes a product that is expected to require 5 hours of labor per unit of product. The standard cost of labor is $6.00 per hour. Horizon actually used 4.80 hours of labor per unit of product. The actual cost of labor was $5.80 per hour. Horizon produced 2,000 units of the product during the period. Based on this information alone, what is the labor price variance? a) $960 favorable b) $960 unfavorable c) $1,000 favorable d) $1,000 unfavorable

Horizon Manufacturing makes a product that is expected to require 5 hours of labor per unit of product. The standard cost of labor is $6.00 per hour. Horizon actually used 4.80 hours of labor per unit of product. The actual cost of labor was $5.80 per hour. Horizon produced 2,000 units of the product during the period. Based on this information alone, what is the labor price variance? a) $960 favorable b) $960 unfavorable c) $1,000 favorable d) $1,000 unfavorable

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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