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Nicole Clothing manufactures embroidered jackets. It has reported the following standards for direct material and direct...

Nicole Clothing manufactures embroidered jackets. It has reported the following standards for direct material and direct labor for the​ year:

Standard DM quantity per​ unit:            3 square feet

Standard cost per sq.​ foot:                                    ​$3.80/sq. ft

Standard DL quantity per​ unit:                2 hours per unit

Standard DL cost per​ hour:                                 ​$9.50/hr

Actual production was​ 14,000 jackets, with​ 33,600 total square feet used at an actual cost of​ $3.90/s                                               q. ft. Total direct labor hours incurred were​ 25,720 at a total cost of​ $249,484. Compute the direct labor rate variance.

A.

​$21,660 F

B.

​$5,144 F

C.

​$21,660 U

D.

​$5,144 U

0 0
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Answer #1

Labor rate variance

= (SR-AR) *ALH

= (9.50 - 249,484/25,720) * 25,720

= (9.50 - 9.70) * 25,720

= 5144 U

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