The standard rate of pay for direct labor is $30 per hour. The company's actual direct labor payroll was $183,600 for 6,000 direct labor hours worked. What is the direct labor rate variance? a) $3,600 unfavorable b) $3,600 favorable c) $2,400 unfavorable d) $2,400 favorable

The standard rate of pay for direct labor is $30 per hour. The company's actual direct labor payroll was $183,600 for 6,000 direct labor hours worked. What is the direct labor rate variance? a) $3,600 unfavorable b) $3,600 favorable c) $2,400 unfavorable d) $2,400 favorable

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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Question

What is the direct labor rate variance? General accounting question

The standard rate of pay for direct labor is $30 per hour. The company's
actual direct labor payroll was $183,600 for 6,000 direct labor hours worked.
What is the direct labor rate variance?
a) $3,600 unfavorable
b) $3,600 favorable
c) $2,400 unfavorable
d) $2,400 favorable

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