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Use the following data to find the direct labor cost variance. Direct labor stan

ID: 2480027 • Letter: U

Question

Use the following data to find the direct labor cost variance.        Direct labor standard (4 hrs. @ $5/hr.)   $20 per unit   Actual hours worked per unit   3.5 hours   Actual units produced   3,800 units   Actual rate per hour   $5.50
Use the following data to find the direct labor cost variance.        Direct labor standard (4 hrs. @ $5/hr.)   $20 per unit   Actual hours worked per unit   3.5 hours   Actual units produced   3,800 units   Actual rate per hour   $5.50
Use the following data to find the direct labor cost variance.        Direct labor standard (4 hrs. @ $5/hr.)   $20 per unit   Actual hours worked per unit   3.5 hours   Actual units produced   3,800 units   Actual rate per hour   $5.50
Use the following data to find the direct labor cost variance.

Explanation / Answer

Direct Labour Rate Variance = (Actual Rate - Standard Rate ) * Actual Hours worked

= ( 5.5 - 5) * 3800*3.5

= 6650 Unfavourable

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