10.5k views
3 votes
Fabulous Fabrics budgeted to manufacture 1300 curtains in February. Actual output for March was with total direct materials cost of $3700 and total direct labor cost of $5250. The direct labor standard is 20 minutes per curtain at a direct labor rate of $15.50 per hour. The direct material standard is 0.75 yards of direct materials per curtain at a cost of $11 per pound. Actual direct labor hours were 150.

A variance analysis for February may show a direct labor rate variance of ______. (Round any intermediary calculations and your final answer to the nearest cent.)

1 Answer

4 votes

Answer:

$2,925 Unfavorable

Step-by-step explanation:

The computation of direct labor rate variance is shown below:-

Actual rate = Direct labor cost ÷ Actual direct labor hours

= $5,250 ÷ 150

= 35

Direct labor rate variance = (Selling rate - Actual rate) × Actual hours rate

= ($15.50 - 35) × 150

= -$19.5 × 150

= $2,925 Unfavorable

Therefore for computing the direct labor rate variance we simply applied the above formula.

User Daniel Trebbien
by
7.6k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories