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19 February, 20:07

Action Enterprises recently used 13,000 labor hours to produce 7,400 completed units. According to manufacturing specifications, each unit is anticipated to take two hours to complete. The company's actual payroll cost amounted to $148,200. If the standard labor cost per hour is $11.3, Action's labor rate variance is (Do not round intermediate calculations.) :

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  1. 19 February, 23:59
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    labor rate variance = $1300 Unfavorable

    Explanation:

    given data

    recently used = 13,000 labor hours

    produce = 7,400

    time = 2 hours

    actual payroll cost = $148,200

    standard labor cost per hour = $11.3

    to find out

    labor rate variance is

    solution

    we get here labor rate variance that is express as

    labor rate variance = standard labor * recently used ... 1

    put here value we get here labor rate variance that is

    labor rate variance = 11.3 * 13,000 - 148,200

    labor rate variance = $1300 Unfavorable
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