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Lavender Company produces several products in its factory, including a karate robe. The company uses a standard cost system. According to the standards that have
Lavender Company produces several products in its factory, including a karate robe. The company uses a standard cost system. According to the standards that have been set for the robes, the factory should work 780 direct labor hours eac month and produce 1,950 robes. Certain standard costs associated with this level of production are as follows:
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Lavender Company produces several products in its factory, including a karate robe. The company uses a standard cost system. According to the standards that have been set for the robes, the factory should work 780 direct labor hours eac month and produce 1,950 robes. Certain standard costs associated with this level of production are as follows: Total $7,020 $2,340 Per unit of Product Direct labor Variable manufacturing overhead (based on DLH) During April, the factory worked 760 direct labor hours and produced 2,000 robes $3.60 $1.20 The following certain actual costs were recorded during the month Total $3,800 400.00 unfavorable Per unit of Product Variable manufacturing overhead $1.90 Spending variance for Direct Labor: 4 The labor rate variance is A.$ 760 unfavorable B. $ C. 360 favorable D. $ E. None of the above 760 favorable 360 unfavorable
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