tems is a start-up company that makes connectors for high-speed Internet connections. BotNet Systems has budgeted three hours of direct labor per connector, at a standard cost of $ 13 per hour. During August, technicians actually worked 192 hours completing 80 connectors. All 80 connectors actually produced were sold. BotNet paid the technicians $ 13.80 per hour. What is BotNet 's direct labor cost variance for August?

Question

Business

Rodrigo Henson

2 January, 12:28

tems is a start-up company that makes connectors for high-speed Internet connections. BotNet Systems has budgeted three hours of direct labor per connector, at a standard cost of $ 13 per hour. During August, technicians actually worked 192 hours completing 80 connectors. All 80 connectors actually produced were sold. BotNet paid the technicians $ 13.80 per hour. What is BotNet 's direct labor cost variance for August?

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Answers (1)

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Hope Delgado · Answer 1

-$153.6 Unfavorable

Explanation:

As per the given question the solution of direct labor cost variance for August is provided below:-

Direct labor cost variance for August = (Standard rate - Actual rate) * Actual hour

= ($13 per hour - $13.80 per hour) * 192 hours

= - $0.8 * 192 hours

= - $153.6 Unfavorable

Here, the actual rate is higher than standard rate so the amount will come into unfavorable and to reach out the direct labor cost variance for august we put the value into formula.