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21 The following data is given for the Harry Company: Budgeted production 26,000 units Actual production 27,500 units Materials: Standard price per ounce $6.50 Standard
21
The following data is given for the Harry Company:
Budgeted production | 26,000 units |
Actual production | 27,500 units |
Materials: | |
Standard price per ounce | $6.50 |
Standard ounces per completed unit | 8 |
Actual ounces purchased and used in production | 228,000 |
Actual price paid for materials | $1,504,800 |
Labor: | |
Standard hourly labor rate | $22 per hour |
Standard hours allowed per completed unit | 6.6 |
Actual labor hours worked | 183,000 |
Actual total labor costs | $4,020,000 |
Overhead: | |
Actual and budgeted fixed overhead | $1,029,600 |
Standard variable overhead rate | $24.50 per standard labor hour |
Actual variable overhead costs | $4,520,000 |
Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.) The direct labor rate variance is
a.$33,000 unfavorable
b.$5,490 favorable
c.$5,490 unfavorable
d.$33,000 favorable
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