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Biery Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 1.3 liters $6.00 per liter

Biery Corporation makes a product with the following standard costs:

Standard Quantity or Hours

Standard Price or Rate

Direct materials

1.3 liters

$6.00 per liter

Direct labor

0.6 hours

$19.00 per hour

Variable overhead

0.6 hours

$3.00 per hour

The company produced 4,100 units in April using 5,380 liters of direct material and 2,610 direct labor-hours. During the month, the company purchased 6,000 liters of the direct material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 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.

The variable overhead rate variance for April is:

$261 U

$246 F

$261 F

$246 U

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