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Use this information for Harry Company to answer the question that follow. The following data are given for Harry Company: Budgeted production 1,031 units Actual
Use this information for Harry Company to answer the question that follow.
The following data are given for Harry Company:
Budgeted production | 1,031 units |
Actual production | 929 units |
Materials: | |
Standard price per ounce | $1.779 |
Standard ounces per completed unit | 11 |
Actual ounces purchased and used in production | 10,526 |
Actual price paid for materials | $21,578 |
Labor: | |
Standard hourly labor rate | $14.09 per hour |
Standard hours allowed per completed unit | 4.8 |
Actual labor hours worked | 4,784 |
Actual total labor costs | $77,740 |
Overhead: | |
Actual and budgeted fixed overhead | $1,155,000 |
Standard variable overhead rate | $25.00 per standard labor hour |
Actual variable overhead costs | $133,952 |
Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.)
The direct labor rate variance is
a.$10,333.44 favorable
b.$14,909.87 favorable
c.$14,909.87 unfavorable
d.$10,333.44 unfavorable
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