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Aleksandr-060686 [28]
3 years ago
11

Pippin Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing o

verhead is applied to products on the basis of direct labor-hours. Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 5.0 grams $ 7.00 per gram Direct labor 0.30 hours $ 21.30 per hour Variable manufacturing overhead 0.30 hours $ 9.60 per hour The company has reported the following actual results for the product for June: Actual output 8,500 units Raw materials purchased 48,100 grams Actual price of raw materials $ 7.70 per gram Raw materials used in production 42,490 grams Actual direct labor-hours 2,300 hours Actual direct labor rate $ 21.70 per hour Actual variable overhead rate $ 9.80 per hour The labor rate variance for the month is closest to:
Business
1 answer:
Ede4ka [16]3 years ago
6 0

Answer:

920 (Unfavorable)

Explanation:

Labor rate variance = Actual direct labor hours (Actual direct labor rate - Standard direct labor rate)

Labor rate variance = 2,300 * ($21.7 - $21.3)

Labor rate variance = 2,300 * 0.4

Labor rate variance = 920 (Unfavorable)

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grandymaker [24]

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