Question
Based on Perry Inc.s standard cost system, the standard hours allowed to produce each unit is 3 hours. The standard labor rate is $10 per
Based on Perry Inc.s standard cost system, the standard hours allowed to produce each unit is 3 hours. The standard labor rate is $10 per hour and the standard variable overhead rate is $4 per hour. During 2019 the company incurred $37,560 in actual variable overhead. Perry also reported the following:
Direct labor rate variance $600 Unfavorable
Variable overhead spending variance $1,800 Favorable
Fixed overhead spending variance $2,500 Favorable
Direct labor efficiency variance $2,400 Unfavorable
How many units did Perry Inc. actually produce in 2019?
2,900 units
9,600 units
3,280 units
3,060 units
None of the answers listed is correct
3,200 units
1,232 units
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