Newbill Enterprises recently used 31,000 labor hours to produce 9,800 completed
ID: 2569237 • Letter: N
Question
Newbill Enterprises recently used 31,000 labor hours to produce 9,800 completed units. According to manufacturing specifications, each unit is anticipated to take 3.05 hours to complete. The company's actual payroll cost amounted to $582,800. If the standard labor cost per hour is $19.20, Newbill's labor rate variance is:
$8,912U.
$12,200F.
$8,912F.
$12,400U.
$12,400F.
Dover Enterprises recently used 19,000 labor hours to produce 5,000 completed units. According to manufacturing specifications, each unit is anticipated to take two hours to complete. The company's actual payroll cost amounted to $222,300. If the standard labor cost per hour is $11.4, Dover's labor rate variance is (Do not round intermediate calculations.):
$5,700U.
$5,700F.
$5,800U.
$5,800F.
None of these.
Explanation / Answer
1 Labor rate variance = 582800-(31000*19.2)= 12400 F 2 Labor rate variance = 222300-(19000*11.4)= 5700 U