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Information for the Tasty Treats Company is as follows: Standard inputs for each batch of cookies 3 hours 20 kg Direct labor Direct materials Standard
Information for the Tasty Treats Company is as follows: Standard inputs for each batch of cookies 3 hours 20 kg Direct labor Direct materials Standard price per input $17 per hour $3.50 per kg Each batch of cookies contains 1,000 cookies. During April, production of 120,000 cookies was planned, but 125,000 cookies were actually made. At an actual price of $3.25 per kg, 2,600 kg of direct materials were purchased and used. The total direct labor cost of the month was $7,000, and the actual pay per hour was $15. Required: Calculate the direct labour rate variance [(actual price per input - standard price per input) x actual quantity]
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