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23 February, 08:51

The following data are given for Harry Company:

Budgeted production 1,001 units

Actual production 920 units

Materials:

Standard price per ounce $1.904

Standard ounces per completed unit 10

Actual ounces purchased and used in

production 9,476

Actual price paid for materials $19,426

Labor:

Standard hourly labor rate $14.09 per hour

Standard hours allowed per completed unit 4.3

Actual labor hours worked 4,738

Actual total labor costs $76,993

Overhead:

Actual and budgeted fixed overhead $1,155,000

Standard variable overhead rate $27.00 per standard labor hour

Actual variable overhead costs $132,664

Overhead is applied on standard labor hours.

A. $5,980 F

B. $20,937 F

C. $20,937 U

D. $5,980 U

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Answers (1)
  1. 23 February, 08:59
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    Question

    Kindly note that the original question is not complete. The closest question found similar to the original is given below.

    The following data are given for Harry Company:

    Budgeted production 1,001 units

    Actual production 920 units

    Materials:

    Standard price per ounce $1.904

    Standard ounces per completed unit 10

    Actual ounces purchased and used in

    production 9,476

    Actual price paid for materials $19,426

    Labor:

    Standard hourly labor rate $14.09 per hour

    Standard hours allowed per completed unit 4.3

    Actual labor hours worked 4,738

    Actual total labor costs $76,993

    Overhead:

    Actual and budgeted fixed overhead $1,155,000

    Standard variable overhead rate $27.00 per standard labor hour

    Actual variable overhead costs $132,664

    Overhead is applied on standard labor hours.

    Determine the labour rate variance.

    Answer:

    Labour rate variance $10,234.58 unfavorable

    Explanation:

    The labour rate variance is the difference between the standard labour cost allowed for the actual hours worked and the actual labor cost for the same hours

    Actual labour hours = 4,738

    $

    4,738 hours should have cost (4,738 * $14.09) = 66,758.42

    but did cost (actual cost) 76,993.00

    labour rate variance 10,234.58 unfavorable

    Labour rate variance $10,234.58 unfavorable
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