The following data is given for the Walker Company: Budgeted production............................................... 26,000 units ...
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Accounting
The following data is given for the Walker Company:
Budgeted production............................................... 26,000 units
Actual production.......................................................27,500 units
Materials: Standard price per oz......................................................$6.50
Standard ounces per completed unit.................................8 Actual ounces purchased and used in production.........228,000
Actual price paid for materials..................................$1,504,800
Labor: Standard hourly labor rate.....................................$22 per hour
Standard hours allowed per completed unit...............6.6 Actual labor hours worked.....................................183,000 Actual total labor costs........................................$4,020,000 Overhead: Actual and budgeted fixed overhead.....................$1,029,600
Standard variable overhead rate.........................$24.50 per standard labor hour
Actual variable overhead costs...........................$4,520,000
Overhead is applied on standard labor hours.
The direct labor rate variance is:
33,000U
6,000F
6,000U
33,000F
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