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: $88,400
Material price variance: $3,400 unfavorable
Total materials variance: $23,900 unfavorable
Standard cost per pound of material: $5
Standard cost per direct labor-hour: $5
Actual direct labor-hours: 8,100 hours
Labor efficiency variance: $2,500 favorable
Standard number of direct labor-hours per unit of Roff: 2 hours
Total labor variance: $1,550 unfavorable
The labor rate variance was:
A. $950 unfavorable
B. $4,050 favorable
C. $4,050 unfavorable
D. $950 favorable
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