What is DNA Company labour rate variance

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Question - DNA Company produces electric fans. During the year, 200,000 electric fans were produced. Labour standards for producing a electric fan are as follows:

Direct labour (2 hours @ $12) $24.00

DNA Company's actual labour hours were 320,000 hours at total labour cost of $4,160,000.

What is DNA Company's labour rate variance?

1) $320,000 F

2) $320,000 U

3) $445,000 U

4) $640,000 F

Reference no: EM132975166

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