Answer:
10,500 favorable
Step-by-step explanation:
Given that:
- Actual number of hours: 7000
- Standard rate: $28.50
- Actual rate: $27
The formula to compute the labor rate variance is shown below:
= Actual hours× (Standard rate - Actual rate)
= 7000($28.50 - $27)
= 10,500 favorable
Hope it will find you well.