A concrete pour is scheduled for 8 hours with a crew of 6 workers at $35/hour each. Due to weather delays, the pour takes 12 hours and requires 2 additional workers for the last 4 hours. What is the total labor cost variance?
Correct Answer
B) $840 over budget
Budgeted: 6 workers × 8 hours × $35 = $1,680. Actual: (6 workers × 12 hours × $35) + (2 workers × 4 hours × $35) = $2,520 + $280 = $2,800. Variance = $2,800 - $1,680 = $1,120 over budget.
Why This Is the Correct Answer
Budgeted: 6 workers × 8 hours × $35 = $1,680. Actual: (6 workers × 12 hours × $35) + (2 workers × 4 hours × $35) = $2,520 + $280 = $2,800. Variance = $2,800 - $1,680 = $1,120 over budget.
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