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Midgley Corporation makes a product whose direct labor standards are 1.3 hours per unit and $14.00 per hour. In April, the company produced 5,400 units
Midgley Corporation makes a product whose direct labor standards are 1.3 hours per unit and $14.00 per hour. In April, the company produced 5,400 units using 6,540 direct labor-hours. The actual direct labor cost was $87,960.
The labor rate variance for April is:
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