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:
<em>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 </em>
<em>Actual labour hours = 4,738</em>
$
4,738 hours should have cost (4,738 × $14.09) = 66,758.42
but did cost (actual cost) <u>76,993.00 </u>
labour rate variance <u> 10,234.58 unfavorable</u>
Labour rate variance $10,234.58 unfavorable
