Question
Bramble Corp. manufactures a product with a standard direct labor cost of two hours at $18 per hour. During July, 1600 units were produced using
Bramble Corp. manufactures a product with a standard direct labor cost of two hours at $18 per hour. During July, 1600 units were produced using 3500 hours at $18.30 per hour. The labor price variance was $6450 F. $1050 U. $6450 U. $5400 U. The predetermined overhead rate for Sunland Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $8880 variable and $5400 fixed, and 1500 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is $720 F. $1800 U. $720 U. $1800 F. Manufacturing overhead costs are applied to work in process on the basis of actual hours worked. standard hours allowed. actual overhead costs incurred. ratio of actual variable to fixed costs. Which department is usually responsible for a labor price variance attributable to misallocation of workers? Quality control Production Purchasing Engineering
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