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Kibodeaux Corporation makes a product with the following standard costs: |
| Standard Quality or Hours | Standard Price or Rate | Standard Cost Per Unit | |
| Inputs | |||
| Direct materials | 9.8 liters | $6.50 per liter | $63.70 |
| Direct labor | 0.1 hours | $23.50 per hour | $2.35 |
| Variable overhead | 0.1 hours | $4.50 per hour | $0.45 |
The company budgeted for production of 3,300 units in June, but actual production was 3,550 units. The company used 34,435 liters of direct
material and 337 direct labor-hours to produce this output. The company purchased 35,640 liters of the direct material at $4.80 per liter. The actual direct labor
rate was $24.20 per hour and the actual variable overhead rate was $4.20 per hour.
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials
are purchased.
|
The labor rate variance for June is?
Please explain. thank you 🙂 |
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