Question
PaquinManufacturing Inc.uses standard costing and has established the following standards for its single product: Direct Materials 2 litres at $3 per litre Direct Labour 0.5
PaquinManufacturing Inc.uses standard costing and has established the following standards for its single product:
Direct Materials
2 litres at $3 per litre
Direct Labour
0.5 hours at $8 per hour
Variable Manufacturing Overhead
0.5 hours at $2 per hour
During November, the company made 4,000 units and incurred the following costs:
Direct Materials Purchased
8,100 litres at $3.10 per litre
Direct Materials Used
7,600 litres
Direct Labour Used
2,200 hours at $8.25 per hour
Actual Variable Manufacturing Overhead
$4,175
What was the labour rate variance for November?
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