A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. the job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000. what is the total labor cost variance?

The total labor cost of variance is the difference of the two presented costs. The actual cost of production is presented below,
actual cost of production = $198,000
The other cost can be calculated through the equation,
cost of production = (3 hours/labor u)(($8/unit)(8,000) = $192,000
Thus, the total labor cost variance is approximately $6,000.

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erinna erinna · Answer 2 · 2019-11-26T11:46:33+01:00

Answer:

$6000 unfavorable.

Explanation:

Given information:

Time = 3 hours

Cost of labor = $8.00

Number of units = 8,000

Total actual labor cost = $198,000.

Standard labor cost = 8,000 × 3 × $8.00 = $192,000

Total labor cost variance = Standard labor cost - Actual labor cost

Total labor cost variance = $192,000 - $198,000

Total labor cost variance = -$6,000

Here negative sign represents the unfavorable amount.

The total labor cost variance is $6000 unfavorable.