Harris Manufacturing produces white sauce. It uses units as the cost driver for overhead. The...
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Accounting
Harris Manufacturing produces white sauce. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost system for 2020:
Budgeted and Standard Data
Actual Data
Material
1/4 lb. @ $14 per pound
Produced
6,200 units
Labor
1.4 hrs. @ $16 per hour
Materials purchased
1,600 lbs. for $13.70/ pound
Total fixed overhead
$84,000
Materials used
1,520 lbs.
Variable overhead
$6.50 per unit
Labor worked
8,740 hrs. at $15.90/hour
Production
6,000 units
Total overhead
$122,000
How much is the direct labor rate variance for 2020?
$874 favorable
$86 unfavorable
$960 unfavorable
$5,440 unfavorable
How much is the overhead controllable variance for 2020?
$2,300 favorable
$2,800 favorable
$500 favorable
$5,100 favorable
Answer & Explanation
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