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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: $82,680 | |
Material price variance: $3,180 unfavorable | |
Total materials variance: $21,180 unfavorable | |
Standard cost per pound of material: $5 | |
Standard cost per direct labor-hour: $5 | |
Actual direct labor-hours: 11,700 hours | |
Labor efficiency variance: $3,000 favorable | |
Standard number of direct labor-hours per unit of Roff: 3 hours | |
Total labor variance: $5,190 unfavorable |
The labor rate variance was:
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