Horizon Manufacturing makes a product whose direct labor standards are 1.5 hours per unit and $18 per hour. In June, the company produced 6,200 units using 10,300 direct labor hours. The actual direct labor cost was $167,400. What is the labor rate variance for June?

Horizon Manufacturing makes a product whose direct labor standards are 1.5 hours per unit and $18 per hour. In June, the company produced 6,200 units using 10,300 direct labor hours. The actual direct labor cost was $167,400. What is the labor rate variance for June?

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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What is the labor rate variance for June on these general accounting question?

Horizon Manufacturing makes a product whose direct
labor standards are 1.5 hours per unit and $18 per hour.
In June, the company produced 6,200 units using
10,300 direct labor hours. The actual direct labor cost
was $167,400.
What is the labor rate variance for June?

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