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Standard Quantity or Hours 2.3 liters 0.7 hours 0.7 hours Standard Cost Per Unit $16.10 $15.40 $ 1.40 Standard Price or Rate $ 7.00 per
Standard Quantity or Hours 2.3 liters 0.7 hours 0.7 hours Standard Cost Per Unit $16.10 $15.40 $ 1.40 Standard Price or Rate $ 7.00 per liter $ 22.00 per hour $ 2.00 per hour Direct materials Direct labor Variable overhead The company budgeted for production of 2,600 units in September, but actual production was 2,500 units. The company used 5,440 liters of direct material and 1,680 direct labor- hours to produce this output. The company purchased 5,800 liters of the direct material at $7.20 per liter. The actual direct labor rate was $24.10 per hour and the actual variable overhead rate was $1.90 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 variable overhead rate variance for September is: Multiple Choice O $168 F O $175 U O $175 F o $168 U
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