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JKCPA
JKCPA, CPA
Category: Finance
Satisfied Customers: 5883
Experience:  Bachelors degree and CPA with Accounting experience.
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Cola Co. manufactures a product with a standard direct labor

Customer Question

Cola Co. manufactures a product with a standard direct labor cost of two hours at $24.00 per hour. During July, 2,000 units were produced using 4,200 hours at $24.40 per hour. The labor price variance was
Submitted: 5 years ago.
Category: Finance
Expert:  JKCPA replied 5 years ago.

Hello Customer,

 

Thanks for your question.

 

(SR-AR)*AH= ($24.00 - $24.40)*4200

=-$0.40 * 4200=

$1,680 U (unfavorable).

 

Hope this helps!