30 Gilder Corporation makes a product with the following standard costs Standard

Q: 30 Gilder Corporation makes a product with the following standard costs Standard

Answer Labor Rate Variance ( Standard Rate - Actual Rate ) x Actual Labor Hours ( $ 16.00 - $ 12.62 ) x 650 2197 Variance $ 2,197.00 Favourable-F ---Actual rate = $ 8203 / 650 hours = $ 12.62 Labor Rate Variance ( Standard Rate - Actual Rate ) x Actual Labor Hours ( $ 16.00 - $ 12.62 ) x 650 2197 Variance $ 2,197.00 Favourable-F

ID: 2436334 • Letter: 3

Question

30 Gilder Corporation makes a product with the following standard costs Standard Quantity or Standard Price or Standard Cost Hours 9.20 grams 01 hours 0.1 hours Rate Per Unit Direct materials Direct labor Variable overhead $8.00 per gram $16.00 per hour $8.00 per hour $73.60 $1.60 $0.80 The company reported the following results concerning this product in June 7.300 units 7.400 units 40,800 grams 47300 grams Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor hours Actual cost of raw materials purchases $262,590 Actual direct labor cost Actua? variable overhead cost 650 hours $8.203 $3170

Explanation / Answer

Answer

Labor Rate Variance

(

Standard Rate

Actual Rate

)

Actual Labor Hours

(

$ 16.00

$ 12.62

)

650

2197

Variance

$ 2,197.00

Favourable-F

---Actual rate = $ 8203 / 650 hours = $ 12.62