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The following data is given for the Harry Company: Budgeted production 1,057 units Actual production 913 units Materials: Standard price per ounce $1.75 Standard ounces
The following data is given for the Harry Company:
Budgeted production | 1,057 units |
Actual production | 913 units |
Materials: | |
Standard price per ounce | $1.75 |
Standard ounces per completed unit | 11 |
Actual ounces purchased and used in production | 9,742 |
Actual cost of materials | $19,971 |
Labor: | |
Standard hourly labor rate | $15.00 per hour |
Standard hours allowed per completed unit | 4.0 |
Actual labor hours worked | 4,701.95 |
Actual total labor costs | $71,705 |
Overhead: | |
Actual and budgeted fixed overhead | $1,038,796 |
Standard variable overhead rate | $26.00 per standard labor hour |
Actual variable overhead costs | $131,655 |
Overhead is applied on standard labor hours. |
Determine the direct labor rate variance.
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