Business

Naomi Lowery

10 January, 08:33

The following data is given for the Harry Company:

Budgeted production 26,000 units

Actual production 27,500 units

Materials:

Standard price per ounce $6.50

Standard ounces per completed unit 8

Actual ounces purchased and used in production 228,000

Actual price paid for materials $1,504,800

Labor:

Standard hourly labor rate $22 per hour

Standard hours allowed per completed unit 6.6

Actual labor hours worked 183,000

Actual total labor costs $4,020,000

Overhead:

Actual and budgeted fixed overhead $1,029,600

Standard variable overhead rate $24.50 per standard labor hour

Actual variable overhead costs $4,520,000

Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.)

The direct labor rate variance is:a. 6,000Ub. 6,000Fc. 33,000Fd. 33,000U