Epley Corporation makes a product with the following standard costs: ...
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Accounting
Epley Corporation makes a product with the following standard costs:
Standard Quantity or Hours
Standard Price or Rate
Direct materials
3.5 pounds
$3.00 per pound
Direct labor
0.8 hours
$19.00 per hour
Variable overhead
0.8 hours
$8.00 per hour
In July the company produced 3,300 units using 12,240 pounds of the direct material and 2,760 direct labor-hours. During the month, the company purchased 13,000 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $51,612 and the actual variable overhead cost was $20,148. 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 July is:
$828 F
$828 U
$792 U
$792 F
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