Standard Faucets uses standard costing and recorded the following data for the month of August:
• Standard direct labor rate $10.00 per hour
• Standard hours allowed for actual production 20,000
• Actual direct labor rate $10.50 per hour
• Labor efficiency variance $5,000 favorable
The labor rate variance for August is:
a. $9,750 favorable.
b. $10,000 unfavorable.
c. $9,750 unfavorable.
d. $10,000 favorable.
Answers: 3
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Standard Faucets uses standard costing and recorded the following data for the month of August:
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