Biscuit Company has developed the following standards for one of


Question Description:

24.99

Biscuit Company has developed the following standards for one of its products. Direct labor hours is the driver used to assign overhead costs to products. Direct materials:10 pounds × $3 per pound Direct labor:2.5 hours × $8 per hour Variable manufacturing overhead:2.5 hours × $2 per hour The following activity occurred during the month of June: Materials purchased:125,000 pounds at $2.60 per pound Materials used:110,000 pounds Units produced:10,000 units Direct labor:24,000 hours at $7.50 per hour Actual variable manufacturing overhead:$51,000 The company records materials price variances at the time of purchase. The direct labor rate variance is? I have the answer as $12,000 favorable but I need the details of the computations. THANKS!!

Answer

24.99