Question
Your Corporation makes a product with the following standard costs: INPUTS STANDARD QUANTITY OR HOURS STANDARD PRICE OR RATE Direct Materials 5.3 kilos $ 6.00
Your Corporation makes a product with the following standard costs:
INPUTS | STANDARD QUANTITY OR HOURS | STANDARD PRICE OR RATE |
Direct Materials | 5.3 kilos | $ 6.00 per kilo |
Direct labor | 0.5 hours | $10.00 per hour |
Variable Overhead | 0.5 hours | $ 4.00 per hour |
The company reported the following results concerning this product in August:
Actual output | 2,100 units |
Raw materials used in production | 10,850 kilos |
Purchases of raw materials | 11,800 kilos |
Actual direct labor-hours | 1,100 hours |
Actual cost of raw materials purchases | $ 73,160 |
Actual direct labor cost | $ 10,560 |
Actual variable overhead cost | $ 4,510 |
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for August is:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started