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Barnes Company produces mens ties. The following budgeted amounts were provided by management for the current year: Category Standard Inputs Standard Cost Direct materials 1.1

Barnes Company produces mens ties. The following budgeted amounts were provided by management for the current year:

Category

Standard Inputs

Standard Cost

Direct materials

1.1 yards per tie

$4.00 per yard

Direct labor

0.32 hours per tie

$9.00 per hour

Barnes produced and sold 4,000 ties during 2014. Actual performance for the year is:

Direct Materials

Direct Labor

Yards used in production

4,100

Labor hours incurred

1,240

Yards purchased

3,900

Actual cost per hour

$9.25

Actual cost per yard

$3.75

How much is the labor rate variance?

$310 unfavorable

$360 favorable

$50 favorable

$1,000 unfavorable

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