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Problem 1: The following data pertains to the month of October for ElmCo when production was budgeted to be 5,000 units of P90. P90 has standard costs per unit of: 3 lbs. of Direct Materials at a cost of $7.00 per lb.; 0.20 hours of Direct Labor at $18.00 per hour; and Variable Overhead assigned on the basis of 0.05 machine hours at a rate of $50 per machine hour. Actual production of P90 for October was 4,700 units. In October the production of P90 totaled 4,700 units, using 828 direct labor hours costing a total of $15,732. Determine the direct labor rate variance. Negative numbers indicate a favorable variance. (Round to the nearest $1.00)
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