Question 31

Reference: 10-09

The following labour standards have been established for a particular product:

Standard labour hours per unit of output 7.5 hours

Standard labour rate $15.25 per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked 9,600 hours

Actual total labour cost $144,480

Actual output 1,200 units

What was the labour rate variance for the month?

Question 31 options:

A)

$240 unfavourable.

B)

$1,920 unfavourable.

C)

$240 favourable.

D)

$1,920 favourable.