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Budgat Co. began operations on June 2, 20x5. The owner, Charlie, designs, makes, and sells clothing. Charlie knows the importance of cost management and so
Budgat Co. began operations on June 2, 20x5. The owner, Charlie, designs, makes, and sells clothing. Charlie knows the importance of cost management and so creates budgets for each period and keeps very detailed records. The standard direct labour cost per unit for 20x5 is 6.1 hours per unit at $19.14 per hour. During the year, 3256 units were made. At the end of the year, records indicate that a total of 11167 DLH were used at $27.27 per hour. What is the direct labour rate variance? Select one: a $26471 Favourable b. $90788 Unfavourable c. $90788 Favourable o d. $161475 Favourable
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