If a company has that following information available for October when per [email protected] per pound, labor 5.0 hours per [email protected] per hour, Actual: material purchased 12,300 pounds @$4.25, material used 11,750 pounds 17,300 direct labor [email protected] per hour, what is the labor rate variance?,
To calculate the labor rate variance, we need to know the standard labor cost per unit and the actual labor cost per unit.
First, let's calculate the standard labor cost per unit:
Standard Labor Cost per Unit = Labor Hours per Unit x Labor Rate per Hour
Given:
Labor Hours per Unit = 5.0 hours per unit
Labor Rate per Hour = $10.25 per hour
Standard Labor Cost per Unit = 5.0 hours per unit x $10.25 per hour = $51.25 per unit
Next, let's calculate the actual labor cost per unit:
Actual Labor Cost per Unit = Actual Labor Hours per Unit x Actual Labor Rate per Hour
Given:
Actual Labor Hours per Unit = 17,300 direct labor hours / Total Units Produced in October
Actual Labor Rate per Hour = $10.20 per hour
To calculate the Total Units Produced in October, we need to know the number of units produced in October. Unfortunately, that information is not available in the given data.
Once you have the Total Units Produced in October, you can calculate the Actual Labor Cost per Unit.
Finally, we can calculate the labor rate variance:
Labor Rate Variance = (Actual Labor Rate per Hour - Standard Labor Rate per Hour) x Total Units Produced in October
Substituting the given values:
Labor Rate Variance = ($10.20 per hour - $10.25 per hour) x Total Units Produced in October
However, since the value for Total Units Produced in October is missing, we cannot calculate the labor rate variance accurately with the given information.