Royal Corp. produces drum kits. It takes 4 hours of direct labor to produce a...
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Accounting
Royal Corp. produces drum kits. It takes 4 hours of direct labor to produce a single drum kit. Generals standard labor cost is $12 per hour. During July, Royal produced 18,000 drum kits and used 72,130 hours of direct labor at a total cost of $863,560. What is Royals labor rate variance for August?
Multiple Choice
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$2,000 unfavorable.
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$2,000 favorable.
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$3,996 favorable.
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$1,996 favorable.
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$1,996 unfavorable.
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