A company budgeted for production of 3300 units in June, but actual production was 3400 units. The company used 33,240 L of direct materials and 320 direct labor hours to produce this output. The company purchased 35,900 L of the direct material at $4.90 per liter. The actual direct labor rate was $22.70 per hour in the actual variable overhead rate was $2.70 per hour. The company applies variable overhead on the basis of direct labor hours. The direct materials purchases variance is computed when the materials are purchased. compute the labor rate variance.

10-23 Q4. Kibodeaux Corporation makes a product with the following standard costs: Inputs................. Standard Quantity Standard Price or Standard Cost or Hours Rate Per Unit Direct materials.......... 9.8 liters $5.00 per liter $49.00 Direct labor.................. 0.1 hours $22.00 per hour $2.20 Variable overhead ......... 0.1 hours $3.00 per hour $0.30