Biery Corporation makes a product with the following standard costs: ...
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Accounting
Biery Corporation makes a product with the following standard costs:
Standard Quantity or Hours
Standard Price or Rate
Direct materials
1.3 liters
$6.00 per liter
Direct labor
0.6 hours
$19.00 per hour
Variable overhead
0.6 hours
$3.00 per hour
The company produced 4,100 units in April using 5,380 liters of direct material and 2,610 direct labor-hours. During the month, the company purchased 6,000 liters of the direct material at $5.80 per liter. The actual direct labor rate was $19.80 per hour and the actual variable overhead rate was $2.90 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 variable overhead rate variance for April is:
$261 U
$246 F
$261 F
$246 U
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