Question
Driver Company Ltd has set the following standards for the production of one unit of product. Normal production each month is 500 units Standard Costs
Driver Company Ltd has set the following standards for the production of one unit of product. Normal production each month is 500 units
Standard Costs per unit:
Direct materials: 8kg at $6.50 per kg
Direct labour: 4 hours at $7.00 per hour
During June, actual production amounted to 420 units. All direct material was purchased and used this month. Actual costs amounted to:
Direct material: 3500kgs at a total cost of $21875
Direct labour: 1720 hours at a total cost of $12212
Required:
Determine the standard direct labour rate variance for June production
a.
$200 U
b.
$168 U
c.
$172 U
d.$280 U
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