The direct labour rate variance for January is a. $300 F b. $300 U c. $400 F
Question:
The direct labour rate variance for January is
a. $300 F
b. $300 U
c. $400 F
d. $400 U
Transcribed Image Text:
A company makes bulk cookies sold in restaurants. The following standards have been developed: Standard Inputs for Each Batch of Cookies Standard Price per Input Direct materials 25 kilograms Direct labour 4 hours $2 per kilogram $15 per hour Each batch of cookies contains 1,000 cookies. During January, production of 100,000 cookies was planned, but 105,000 cookies were actually made. At an actual price of $2.15 per kilogram, 2,250 kilograms of direct materials were purchased and used. The total direct labour cost for the month was $5,600, and the actual pay per hour was $14.00.
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