Vermont Manufacturing Co. completed Job #702 which had a standard of 700 labor hours at a standard rate of $20.00 per hour. The job was completed in 680 hours, and the actual average labor rate was $21.10 per hour. What is the labor rate variance?

Vermont Manufacturing Co. completed Job #702 which had a standard of 700 labor hours at a standard rate of $20.00 per hour. The job was completed in 680 hours, and the actual average labor rate was $21.10 per hour. What is the labor rate variance?

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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Can you help me solve this general accounting problem with the correct methodology?

Vermont Manufacturing Co. completed Job #702 which had a standard
of 700 labor hours at a standard rate of $20.00 per hour. The job was
completed in 680 hours, and the actual average labor rate was $21.10
per hour.
What is the labor rate variance?

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