?

Managerial Accounting

Free Version

Upgrade subject to access all content

Moderate

Determination of Variances

MGRACT-HPE914

The standards for producing a bottle of medicine included the following:
Direct labor (2 hours @ \$9.50) -- \$19.00

During April, 1,100 bottles were produced and 2,300 labor hours were worked. Workers were paid an average of \$9.70 per hour.

The labor rate variance for April was:

A

$460 Favorable

B

$920 Favorable

C

$460 Unfavorable

D

$920 Unfavorable