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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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