The following labor standards have been established for a product manufactured by Galaxy Enterprises: • Standard labor hours per unit of output: 1.2 hours Standard labor rate: $12.50 per hour The following data pertain to operations for the last month: . Actual hours worked: 8,800 hours • Actual total labor cost: $105,600 Actual Output: 7,200 units Required: What is the labor rate variance for the month? a) $4,500 favourable b) $4,400 favourable c) $1,520 unfavourable d) $1,760 favourable

The following labor standards have been established for a product manufactured by Galaxy Enterprises: • Standard labor hours per unit of output: 1.2 hours Standard labor rate: $12.50 per hour The following data pertain to operations for the last month: . Actual hours worked: 8,800 hours • Actual total labor cost: $105,600 Actual Output: 7,200 units Required: What is the labor rate variance for the month? a) $4,500 favourable b) $4,400 favourable c) $1,520 unfavourable d) $1,760 favourable

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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