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Actual Hours of
Input, at the
Actual Hours of Input, at the Standard Rate Standard Hours Allowed for Output, at the
(AH ? AR) (AH ? SR) (SH ? SR)
5,750 hours ?
$12.00 per hour 6,000 hours* ?
$12.00 per hour
$73,600 = $69,000 = $72,000
? ? ?
$4,600 U Efficiency Variance,
*20,000 units ? 0.3 hours per unit = 6,000 hours
Labor rate variance = AH (AR – SR)
5,750 hours ($12.80 per hour* – $12.00 per hour) = $4,600 U
*$73,600 ? 5,750 hours = $12.80 per hour
Labor efficiency variance = SR (AH – SH)
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