Anemone company produces picture frames. during the year, 200,000 picture frames were produced. materials and labor standards for producing the picture frames are as follows: direct materials (2 pieces of wood @ $3) $6.00 $24.00 direct labor (2 hours e $12) anemone purchased and used 600,000 pieces of wood at $4.00 each, and its actual labor hours were 320,000 hours at a wage rate of $13 what is anemone's labor rate variance? a. $320,000 u ob. $660,500 f o c. $450,000 f od. $445,000 u

The correct answer is A.

Explanation:

Giving the following information:

During the year, 200,000 picture frames were produced.

Materials and labor standards for producing the picture frames are as follows:

Direct labor (2 hours e $12)

Its actual labor hours were 320,000 hours at a wage rate of $13.

We need to use the following formula:

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (12 - 13)*320,000= $320,000 unfavorable

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answer; tech (a) is correct;