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The following data are given for Harry Company: Budgeted production 1,076 units Actual production 929 units Materials: Standard price per ounce $1.859 Standard ounces per
The following data are given for Harry Company:
Budgeted production | 1,076 units |
Actual production | 929 units |
Materials: | |
Standard price per ounce | $1.859 |
Standard ounces per completed unit | 10 |
Actual ounces purchased and used in production | 9,569 |
Actual price paid for materials | $19,616 |
Labor: | |
Standard hourly labor rate | $14.39 per hour |
Standard hours allowed per completed unit | 4.6 |
Actual labor hours worked | 4,784 |
Actual total labor costs | $77,740 |
Overhead: | |
Actual and budgeted fixed overhead | $1,153,000 |
Standard variable overhead rate | $26.00 per standard labor hour |
Actual variable overhead costs | $133,952 |
Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.) |
The direct labor rate variance is
a.$16,245.77 favorable
b.$16,245.77 unfavorable
c.$8,898.24 favorable
d.$8,898.24 unfavorable
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