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Janet Company labor rate variance
Janet Company uses a standard cost system to collect costs related to the production of its "bowling ball" fruitcakes. The direct labor standard for each fruitcake is 1.25 hours at a standard cost of $11.00 per hour. During the month of November, Janet's fruitcake production used 9,820 direct labor hours at a total direct labor cost of $106,547. This resulted in production of 8,500 fruitcakes for November.
What is Janet's labor rate variance for November?
A) $8,855 favorableB) $1,473 favorableC) $13,047 unfavorableD) $14,520 unfavorable
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