Question
The following cost information is for Harry Company. Actual results Total cost of purchasing material $58,000 Number of labor hours worked 1,000 hours Number of
The following cost information is for Harry Company.
Actual results
| Total cost of purchasing material | $58,000 |
| Number of labor hours worked | 1,000 hours |
| Number of material pounds used in production | 5,850 pounds |
| Total labor cost | $48,000 |
| Number of units produced | 300 units |
| Number of material pounds purchased | 6,250 pounds |
Harry Company has established the following standards.
| Price per pound of materials | $10.00 per pound |
| Number of pounds of material to produce one unit | 20 pounds |
| Standard labor rate | $50.00 per hour |
| Number of labor hours to produce one unit | 3 hours |
Compute Harrys labor rate variance.
| A. $2,000 Unfavorable B. $5,000 Unfavorable C. $5,000 Favorable D. $2,000 Favorable |
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Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
