Question

DH Co expected to produce 200 units of its product, the Bone, in $$20 \times 3$$. In fact 260 units were produced. The standard labour cost per unit was $$\$ 70$$ (10 hours at a rate of $$\$ 7$$ per hour). The actual labour cost was $$\$ 18,600$$ and the labour force worked 2,200 hours although they were paid for 2,300 hours. What is the direct labour rate variance for the company in $$20 \times 3$$ ? $$ \begin{aligned} &\text { What is the direct labour rate variance for the company in } 20 \times 3 \text { ? }\\ &\begin{array}{ll} 0 & \$ 400(\mathrm{~A}) \\ 0 & \$ 2,500(\mathrm{~F}) \\ 0 & \$ 2,500(\mathrm{~A}) \\ 0 & \$ 3,200(\mathrm{~A}) \end{array} \end{aligned} $$

   DH Co expected to produce 200 units of its product, the Bone, in $$20 \times 3$$. In fact 260 units were produced. The standard labour cost per unit was $$\$ 70$$ (10 hours at a rate of $$\$ 7$$ per hour). The actual labour cost was $$\$ 18,600$$ and the labour force worked 2,200 hours although they were paid for 2,300 hours.
What is the direct labour rate variance for the company in $$20 \times 3$$ ?
$$
\begin{aligned}
&\text { What is the direct labour rate variance for the company in } 20 \times 3 \text { ? }\\
&\begin{array}{ll}
0 & \$ 400(\mathrm{~A}) \\
0 & \$ 2,500(\mathrm{~F}) \\
0 & \$ 2,500(\mathrm{~A}) \\
0 & \$ 3,200(\mathrm{~A})
\end{array}
\end{aligned}
$$
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ACCA FMA/FA Foundations in Accountancy-Management Accounting Interactive Text (Practice Revision Kit Not Included)
ACCA FMA/FA Foundations in Accountancy-Management Accounting Interactive Text (Practice Revision Kit Not Included)
BPP Learning Media 1st Edition
Chapter 14, Problem 2 ↓

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The standard labor cost per unit is given as $70, which is for 10 hours of work. Therefore, the standard cost per hour is: \[ \frac{\$70}{10 \text{ hours}} = \$7 \text{ per hour} \]  Show more…

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DH Co expected to produce 200 units of its product, the Bone, in $$20 \times 3$$. In fact 260 units were produced. The standard labour cost per unit was $$\$ 70$$ (10 hours at a rate of $$\$ 7$$ per hour). The actual labour cost was $$\$ 18,600$$ and the labour force worked 2,200 hours although they were paid for 2,300 hours. What is the direct labour rate variance for the company in $$20 \times 3$$ ? $$ \begin{aligned} &\text { What is the direct labour rate variance for the company in } 20 \times 3 \text { ? }\\ &\begin{array}{ll} 0 & \$ 400(\mathrm{~A}) \\ 0 & \$ 2,500(\mathrm{~F}) \\ 0 & \$ 2,500(\mathrm{~A}) \\ 0 & \$ 3,200(\mathrm{~A}) \end{array} \end{aligned} $$
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