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Tout Corporation makes a product that has the following direct labor standards: Standard direct labor-hours 0.1 hours per unit Standard direct labor rate $22.00 per
Tout Corporation makes a product that has the following direct labor standards:
Standard direct labor-hours | 0.1 | hours per unit |
Standard direct labor rate | $22.00 | per hour |
Standard cost | $ 2.20 | per unit |
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The company budgeted for production of 6,400 units in October, but actual production was 6,500 units. The company used 610 direct labor-hours to produce this output. The actual direct labor rate was $21.80 per hour. The labor rate variance for October is:
$122 U
$130 F
$122 F
$130 U
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