What is the direct manufacturing labour rate variance

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The following data for a pottery company pertain to the production of 2,000 clay pots during July.

Direct Materials (all materials purchased were used):

Standard cost: $6.00 per kilogram of clay

Total actual cost: $11,200

Standard cost allowed for units produced was $12,000

Materials efficiency variance was $240 unfavourable

Direct Manufacturing Labour:

Standard cost is 2 pots per hour at $24.00 per hour

Actual cost per hour was $24.50

Actual labour was 972 hours

What is the direct manufacturing labour rate variance?

a. $186 favourable

b. $486 unfavourable

c. $672 unfavourable

d. $672 favourable

e. $486 favourable

Reference no: EM132091469

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