Question

# Budgeted production 26,000 units Actual production 27,500 units Labor:   Standard hourly labor rate \$22 per hour...

 Budgeted production 26,000 units Actual production 27,500 units
 Labor: Standard hourly labor rate \$22 per hour Standard hours allowed per completed unit 6.6 Actual labor hours worked 183,000 Actual total labor costs \$4,020,000

What is the labor price variance?

 5,490 unfavorable 5,490 favorable 33,000 favorable 33,000 unfavorable

 BUDGETED (26000 UNIT) STANDARD (27500 UNITS) ACTUAL (27500 UNITS) HOURS RATE AMOUNT HOURS RATE AMOUNT HOURS RATE AMOUNT 171600 22 3775200 181500 22 3993000 183000 21.96721 4020000 (26000*6.6) (27500*6.6) Labour price variance = (Standard Hours - Actual Hours)* Standard rate (181500 - 183000)*22 33000 Unfavourable

If the option is- None of the above then that must be selected.

Above answer is for Labour Efficiency variance. Since no option is matching, I have to find out Labour Efficiency rate in place of Labour Price Variance.

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