Question

Bonita has a standard of 2 hours of labor per unit, at $12 per hour. In producing 2600 units, Bonita used 5050 hours of labor at a total cost of $61610. Bonita's labor quantity variance is

Answer 1

1800

Explanation:

Labor quantity variance= Actual quantity ×standard price - standard quantity ×standard price

Standard quantity=2×2600=5200

Labor quantity variance

5050×12-5200×12=1800