Determine the labor rate variance

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Question

Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:

Direct material of 4.50 yards at $5.00 per yard Direct labor of 2.50 hours at $18.00 per hour Overhead applied per sleeping bag at $20.00

In the month of April, the company actually produced 5,200 sleeping bags using 27,300 yards of material at a cost of $5.50 per yard. The labor used was 11,700 hours at an average rate of $16.50 per hour. The actual overhead spending was $96,200.

Determine the labor rate variance and round to the nearest whole dollar. Enter a favorable variance as a negative number. Enter an unfavorable variance as a positive number.

Reference no: EM132382227

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