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Raggs Corporation: Labor Rate Variance

Raggs Corporation's standard wage rate is $12.40 per direct labor-hour (DLH) and according to the standards, each unit of output requires 3.9 DLHs. In April, 5,230 units were produced, the actual wage rate was $11.80 per DLH, and the actual hours were 24,170 DLHs. The Labor Rate Variance for April would be recorded as a:

credit of $14,502.

debit of $14,502.

debit of $14,202.

credit of $14,202.

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Raggs Corporation's standard wage rate is $12.40 per direct labor-hour (DLH) and according to the standards, each unit of output ...

Solution Summary

This solution is comprised of a detailed explanation to answer what is the Labor Rate Variance for April.

$2.19