Question
Beyonc is looking at a monthly performance report for her lemonade stand for last month. She has been provided with the following standard cost per
Beyonc is looking at a monthly performance report for her lemonade stand for last month. She has been provided with the following standard cost per batch of lemonade: Cost Standard Quantity (Input per batch) Standard Price Direct Materials 0.8 pounds $5.00 per pound Direct Labor 1.2 hours $15.00 per hour Manufacturing overhead is allocated on the basis of machine hours. Last month, Beyonc's lemonade stand produced 150 batches of lemonade and incurred the following costs: a. Purchased 100 pounds of materials at a cost of $3.58 per pound. b. Used 98 pounds of materials in production. (Finished goods and work in process inventories can be ignored). c. Worked 199 direct labor-hours at a cost of $15.88 per hour. What is Beyonc's labor rate variance for last month? Enter your answer as a positive number (note Favorable or Unfavorable for the next question).
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