Find out the direct labor rate variance


Lopata Manufacturing uses a standard cost system for its guitar boxes. The standard labor rate per box is $1 per box. This standard was established on the basis of producing 8 boxes per hour. This month, Lopata produced 1,500 boxes using 580 direct labor hours at an actual direct labor cost of $5,800. The direct labor rate variance was:

a) $1,600 favorable

b) $1,160 favorable

c) $1,600 unfavorable

d) $1,160 unfavorable

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Accounting Basics: Find out the direct labor rate variance
Reference No:- TGS086237

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