Question
The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of
The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August:
Actual cost of direct material purchased and used: $75,560 | |
Material price variance: $6,460 unfavorable | |
Total materials variance: $27,360 unfavorable | |
Standard cost per pound of material: $6.0 | |
Standard cost per direct labor-hour: $7.0 | |
Actual direct labor-hours: 7,000 hours | |
Labor efficiency variance: $3,770 favorable | |
Standard number of direct labor-hours per unit of Roff: 4.0 hours | |
Total labor variance: $3,103 unfavorable |
The actual direct labor rate per hour was closest to: |
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