Reference no: EM133014608
Question - Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms × $12/kilogram) = $60/unit; direct labor (3.5 hours/unit × $20/hour) = $70/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December:
In-process beginning inventory None
In-process ending inventory-80% complete to labor 970 units
Units completed during the period 6,720 units
Budgeted output 7,230 units
Purchases of materials (in kilograms) 40,500
Total actual direct labor cost incurred $530,138
Direct labor hours worked (AQ) 26,600 hours
Materials purchase-price variance $2,025 favorable
Increase in materials inventory in December 1,800 kilograms
Required - What the direct labor rate variance for December?
-$5,922 favorable.
-$8,062 unfavorable.
-$24,682 unfavorable.
-$59,682 unfavorable.
-$1,862 favorable.