Question
Kibodeaux Corporation makes a product with the following standard costs: Standard Quality or Hours Standard Price or Rate Standard Cost Per Unit Inputs Direct materials
Kibodeaux Corporation makes a product with the following standard costs: Standard Quality or Hours Standard Price or Rate Standard Cost Per Unit Inputs Direct materials 9.8 liters $8.50 per liter $83.30 Direct labor 0.1 hours $25.50 per hour $2.55 Variable overhead 0.1 hours $6.50 per hour $0.65 The company budgeted for production of 3,300 units in June, but actual production was 3,750 units. The company used 36,375 liters of direct material and 356 direct labor-hours to produce this output. The company purchased 35,640 liters of the direct material at $4.50 per liter. The actual direct labor rate was $26.20 per hour and the actual variable overhead rate was $6.20 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 labor rate variance for June is:
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