Asked by
Verified
The standard rate of pay is $12 per direct labor hour. If the actual direct labor payroll was $47040 for 4000 direct labor hours worked the direct labor price (rate) variance is
A) $960 unfavorable.
B) $960 favorable.
C) $1200 unfavorable.
D) $1200 favorable.
Direct Labor Price Variance
The difference between the actual cost of direct labor and the expected (or standard) cost, based on the actual hours worked.
Standard Rate
A predetermined cost for materials, labor, and overhead set for computing variances and budgeting purposes.
Direct Labor Hours
The total hours worked by employees directly involved in manufacturing a product or delivering a service.
- Investigate the differences in direct labor costs by analyzing standard pricing and the effects of diverging from these established prices on cost implications.
Verified Answer
Learning Objectives
- Investigate the differences in direct labor costs by analyzing standard pricing and the effects of diverging from these established prices on cost implications.
Related questions
The Standard Number of Hours That Should Have Been Worked ...
Karim Corporation Uses a Standard Cost System in Which Inventories ...
Loos Corporation Uses a Standard Cost System in Which Inventories ...
Lemke Corporation Uses a Standard Cost System in Which Inventories ...
Isaman Corporation Uses a Standard Cost System in Which Inventories ...