Raggs corporations standard wage rate


Problem: Raggs Corporation's standard wage rate is $12.40 per direct labor-hour (DLH) and according to the standards, each unit of output requires 3.9 DLHs. In April, 5,230 units were produced, the actual wage rate was $11.80 per DLH, and the actual hours were 24,170 DLHs. The Labor Rate Variance for April would be recorded as a:

  • credit of $14,502.
  • debit of $14,502.
  • debit of $14,202.
  • credit of $14,202.

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