The actual cost of direct labor per hour is $32 and the standard cost of direct labor per hour is $27.50. The direct labor hours allowed per finished unit is 0.95 hours. During the current period, 6,400 units of finished goods were produced using 3,200 direct labor hours. How much is the direct labor rate variance?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 8PA: Breakaway Companys labor information for May is as follows: A. What is the actual direct labor rate...
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The actual cost of direct labor per hour is $32
and the standard cost of direct labor per hour
is $27.50. The direct labor hours allowed per
finished unit is 0.95 hours. During the current
period, 6,400 units of finished goods were
produced using 3,200 direct labor hours.
How much is the direct labor rate variance?
Transcribed Image Text:The actual cost of direct labor per hour is $32 and the standard cost of direct labor per hour is $27.50. The direct labor hours allowed per finished unit is 0.95 hours. During the current period, 6,400 units of finished goods were produced using 3,200 direct labor hours. How much is the direct labor rate variance?
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