Flapjack Corporation had 8,200 actual direct labor hours at an actual rate of $12.40 per hour. Original production had been budgeted for 1,100 units, but only 1,000 units were actually produced. Labor standards were 7.6 hours per completed unit at a standard rate of $13.00 per hour. The direct labor rate variance is

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2 July, 04:51

Flapjack Corporation had 8,200 actual direct labor hours at an actual rate of $12.40 per hour. Original production had been budgeted for 1,100 units, but only 1,000 units were actually produced. Labor standards were 7.6 hours per completed unit at a standard rate of $13.00 per hour. The direct labor rate variance is

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Kevin Decker · Answer 1

The labor time variance is 7,800 U.

Explanation:

Calculate the standard hour.

Standard hour=Unit produced Labor standard per hour

=1,000x 7.6

= 7,600

Therefore, the standard hour is 7,600.

Explanation | Common mistakes | Hint for next step

The standard hour is calculated by multiplying units produced with labor standard per hour. The unit produced is 1,000 unit and labor standard per hour is 7.6 hours, so the standard hour is 7,600.

Step 2 of 2

Calculate the labor time variance.

Labor time variance = (Actual hour-Standard hour) Standard rate

= (8,200-7,600) $13

=600x$13

= 7,800 Unfavroable

Therefore, the labor time variance is 7,800 Unfavorable