The following labor standards have been established for a particular product:

The following data pertain to operations concerning the product for the last month:

What is the labor rate variance for the month?

A) $1,908 U
B) $2,430 U
C) $4,284 U
D) $4,284 F
Level: Easy LO: 3 Ans: B

The following information pertains to Bates Company’s direct labor for March:

What was Bates’ total actual direct labor cost for March?
A) $117,600
B) $118,000
C) $134,000
D) $134,400
Source: CPA, adapted
Level: Hard LO: 3 Ans: A
The direct labor standards for a particular product are:
4 hours of direct labor @ $12.00 per direct labor-hour = $48.00
During October, 3,350 units of this product were made, which was 150 units less than budgeted. The
labor cost incurred was $159,786 and 13,450 direct labor-hours were worked. The direct labor variances
for the month were:

A) A above
B) B above
C) C above
D) D above
Source: CIMA, adapted
Level: Medium LO: 3 Ans: C