Reference no: EM132516333

Paquin Manufacturing Inc. uses standard costing and has established the following standards for its single product:

Direct Materials                  2 litres at $3 per litre

Direct Labour                        0.5 hours at $8 per hour

Variable Manufacturing Overhead         0.5 hours at $2 per hour

During November, the company made 4,000 units and incurred the following costs:

Direct Materials Purchased          8,100 litres at $3.10 per litre

Direct Materials Used                  7,600 litres

Direct Labour Used                    2,200 hours at $8.25 per hour

Actual Variable Manufacturing Overhead  $4,175

Question 1: What was the labour rate variance for November?