Question
Show works/steps used to get answer. The following data for a pottery company pertain to the production of 2,000 clay pots during July. Direct Materials
Show works/steps used to get answer.
The following data for a pottery company pertain to the production of 2,000 clay pots during July.
Direct Materials (all materials purchased were used):
Standard cost: $6.00 per kilogram of clay Total actual cost: $11,200 Standard cost allowed for units produced was $12,000 Materials efficiency variance was $240 unfavourable
Direct Manufacturing Labour:
Standard cost is 2 pots per hour at $24.00 per hour Actual cost per hour was $24.50 Actual labour was 972 hours
What is the direct manufacturing labour rate variance?
a. | $186 favourable |
b. | $486 unfavourable |
c. | $672 unfavourable |
d. | $672 favourable |
e. | $486 favourable |
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