Newhard Electronics manufactures circuit boards for mobile devices. Each circuit board has a standard cost of $45. Standards call for three circuit boards per device. In March, the company purchased 180 circuit boards for $8,640. The company used 150 circuit boards in the production of 60 devices, with five circuit boards damaged during production. The standard quantity of labor is 15 hours per device, with a standard wage rate of $20. In March, the company incurred 900 labor hours at a cost of $18,300. How much is the labor rate variance?

Newhard Electronics manufactures circuit boards for mobile devices. Each circuit board has a standard cost of $45. Standards call for three circuit boards per device. In March, the company purchased 180 circuit boards for $8,640. The company used 150 circuit boards in the production of 60 devices, with five circuit boards damaged during production. The standard quantity of labor is 15 hours per device, with a standard wage rate of $20. In March, the company incurred 900 labor hours at a cost of $18,300. How much is the labor rate variance?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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