The landry company has developed standards for labor. during june, 69 units were scheduled and 100 were produced. data related to labor are: standard hours allowed 2 hours per unit standard wages allowed $3.40 per hour actual direct labor 250 hours (total cost $825) what is the labor rate variance for june? $25 favorable. $74 unfavorable. $74 favorable. $25 unfavorable.

$25 favorable

Explanation:

std rate           $ 3.40

actual rate   $ 3.30  (825 total cost / 250 labor hours)

actual hours250

difference  $0.10

250 x 0.1 = rate variance

rate variance  $25.00

The diference between the actual cost per hour of the employee and the standard we considered is positive, it cost less to have the employee working on the product. the variance is favorable.

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20