Use the following data to find the direct labor cost variance. Direct labor stan
ID: 2479938 • 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.Explanation / Answer
Direct labor cost variance = Actual Quantity x Actual Rate - Actual Quantity x Standard Rate
= Actual Quantity (Actual Rate-Standard Rate)
= (3800*3.5)*(5.50-5)
= 13,300(5.50-5)
= $6650 (U)