Answered Essay: he Flapjack Corporation had 8,026 actual direct labor hours at an actual rate of $12.40 per hour. Original production

CengageNOW2] Onlir × | Q Managerial chapter 23 Flas + 0 2 cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?inprogress-true ☆| 回牟 The Flapjack Corporation had 8.026 actual direct labor hours at an achual rate of $12.40 per hour onginsl production had been butgeted for 1.100 units, tbut only 997 unies were standards were 7.1 hours per completed unit at a standard rate of $12.84 per hour The labor rate variance is 3,53 1.44 unfavorable 3.53 1.44 favorable 11,600.07 unfavorable 11,600.07 tavorable

The Flapjack Corporation had 8,026 actual direct labor hours at an actual rate of $12.40 per hour. Original production had been budgeted for 1,100 units, but only 997 units were actually produced. Labor standards were 7.1 hours per completed unit at a standard rate of $12.84 per hour. The labor rate variance is 3,531.44 unfavorable 3.531.44 favorable 11,600.07 unfavorable 11,600.07 favorable

Expert Answer

 

CALCULATE LABOUR RATE VARIANCE :

Labour rate variance = (standard rate-actual rate)actual hours

= (12.84-12.40)8026

Labour rate variance = 3531.44 Favourable

so answer is b) 3531.44 favourable

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