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27 May, 18:08

The Flapjack Corporation had 8,200 actual direct labor hours at an actual rate of $12.40 per hour. Original

production had been budgeted for 1,100 units, but only 1,000 units were actually produced. Labor

standards were 7.6 hours per completed unit at a standard rate of $13.00 per hour.

Compute the labor time variance.:

a: 9,880F

b: 9,880U

c: 7,800U

d: 7,800F

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Answers (1)
  1. 27 May, 22:05
    0
    Option (C) is correct.

    Explanation:

    Given that,

    Actual direct labor hours = 8,200

    Actual rate = $12.40 per hour

    Original production = 1,100 units

    Actual units produced = 1,000

    Labor standards = 7.6 hours per completed unit

    standard rate = $13.00 per hour

    Labor time variance:

    = (Standard hours - Actual hours) * Standard rate

    = (1,000 * 7.6 - 8,200) * $13

    = 7,800 Unfavorable
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