Oceanside Manufacturing has set labor costs at $60 per unit of output, based on 4 hours allowed to produce each finished unit. Last month, 5,200 direct labor hours were used, and 1,300 units of output were manufactured at a total cost of $78,000. Determine the labor rate variance.

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Oceanside Manufacturing has set labor costs at $60 per unit of output, based
on 4 hours allowed to produce each finished unit. Last month, 5,200 direct
labor hours were used, and 1,300 units of output were manufactured at a
total cost of $78,000.
Determine the labor rate variance.
Transcribed Image Text:Oceanside Manufacturing has set labor costs at $60 per unit of output, based on 4 hours allowed to produce each finished unit. Last month, 5,200 direct labor hours were used, and 1,300 units of output were manufactured at a total cost of $78,000. Determine the labor rate variance.
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