$4.50 $20.00 Refer to Figure 10-5. What is Seaside\'s total labor variance? $20,

Question

$4.50

$20.00

Refer to Figure 10-5. What is Seaside's total labor variance?

$20,000 F

$20,000 U

$112,500 F

$120,000 U

Seaside Company produces picture frames. During the year 190,000 picture frames were produced. Materials and labor standards for producing the picture frames are as follows: Direct materials (2 pieces of wood @ $2.25)

$4.50

Direct labor (2 hours @ $10)

$20.00

Seaside purchased and used 400,000 pieces of wood at $2.00 each and its actual labor hours were 360,000 hours at a wage rate of $10.50.

Explanation / Answer

ANSWER IS $20,000 F

Total labor variance = standard cost - Actual cost

=(190,000*2*10)-(360,000*10.5)

= 20,000 F

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