The following materials standards have been established for a particular product: Standard quantity per unit of output …………….. 3.3 hours Standard price ……………………………………. $16.15 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked ………………….. 6,300 hours Actual total labor cost ………….. $103,635 Actual output ……………………………….. 2,000 units What is the labor rate variance for the month? $2,955 F $2,955 U $1,890 U $4,935 F

The following materials standards have been established for a particular product:
Standard quantity per unit of output ……………..  3.3 hours
Standard price ……………………………………. $16.15 per hour
 

The following data pertain to operations concerning the product for the last month:
Actual hours worked  ………………….. 6,300  hours
Actual total labor cost   ………….. $103,635
Actual output ……………………………….. 2,000 units
 

What is the labor rate variance for the month?

	$2,955 F
	$2,955 U
	$1,890 U
	$4,935 F

Answer
$1,890 U