Question

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?

Answer 1

-$153.6 Unfavorable

Step-by-step 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.