Asked by
Ingrid Natalia Cubillos Camacho
on Dec 16, 2024Verified
Clark Company manufactures a product with a standard direct labor cost of two hours at $18.00 per hour. During July 2000 units were produced using 4200 hours at $18.30 per hour. The labor quantity variance was
A) $3660 F.
B) $3600 U.
C) $2460 U.
D) $3660 U.
Labor Quantity Variance
The difference between the actual hours worked and the standard hours allowed for the work performed, multiplied by the standard hourly wage rate.
Produced
The completed output of goods or services as a result of manufacturing or production processes.
- Ascertain the total variance in overhead costs, as well as the variances in labor rates and amounts, and in the rates and quantities of materials.
Verified Answer
KW
Learning Objectives
- Ascertain the total variance in overhead costs, as well as the variances in labor rates and amounts, and in the rates and quantities of materials.