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Category > Management Posted 30 Apr 2018 My Price 7.00

Kibodeaux Corporation

Kibodeaux Corporation makes a product with the following standard costs:

  Standard Quality or Hours Standard Price or Rate Standard Cost Per Unit
Inputs      
Direct materials 9.8 liters $6.50 per liter $63.70
Direct labor 0.1 hours $23.50 per hour $2.35
Variable overhead 0.1 hours $4.50 per hour $0.45


The company budgeted for production of 3,300 units in June, but actual production was 3,550 units. The company used 34,435 liters of direct material and 337 direct labor-hours to produce this output. The company purchased 35,640 liters of the direct material at $4.80 per liter. The actual direct labor rate was $24.20 per hour and the actual variable overhead rate was $4.20 per hour.

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 June is?

 

Please explain. thank you :)

Answers

Maurice Tutor
(5)
Status NEW Posted 30 Apr 2018 07:04 PM My Price 7.00

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