Terry Company completes job #601 which has a standard of 640 labor hours at a standard rate of $18.70 per hour.
Question
Terry Company completes job #601 which has a
standard of 640 labor hours at a standard rate of $18.70 per hour. The job was completed in 600 hours and the average actual labor rate was $19.20 per hour. What is the labor rate variance? A negative number indicates an favorable variance and a positive number indicates an unfavorable variance