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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: $147,735 | |
Material price variance: $7,035 unfavorable | |
Total materials variance: $30,435 unfavorable | |
Standard cost per pound of material: $6 | |
Standard cost per direct labor-hour: $6 | |
Actual direct labor-hours: 3,010 hours | |
Labor efficiency variance: $5,400 favorable | |
Standard number of direct labor-hours per unit of Roff: 1 hours | |
Total labor variance: $3,594 unfavorable |
The labor rate variance was: |
a. $8,994 unfavorable
b. $1,806 unfavorable
c. $1,806 favorable
d. $8,994 favorable
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