The following data is given for the Harry Company: Budget production 26,000 unit

Question

The following data is given for the Harry Company:
Budget production 26,000 units       Actcual production 27,000 units 

Materials:  statndard price per ounce $6.50~ standard ouces 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~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 stadard labor hour~Actual variable overhead costs$4,520,000~overhead is applied on standard labor hours

Overhead is applied on standard labor hours.


The direct labor time variance is:
a. 33,000F

b. 33,000U

c. 6,000F

d. 6,000U

Explanation / Answer

Direct Labor Time Variance (DLTV) = (Actual Direct Labor Hours – Standard Direct Labor Hours) × Standard Rate per Hour However Std Dir Lab hrs is not given.

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