PLEASE SHOW SOLUTION. DROP DOWN OPTIONS ARE FAVORABLE OR UNFAVORABLE. Exercise 6

Question

PLEASE SHOW SOLUTION. DROP DOWN OPTIONS ARE FAVORABLE OR UNFAVORABLE.

Exercise 6-1 Crane Paints manufactures artist's oil paints. Each 40 ml tube of paint requires 5 minutes of direct labor, and the standard labor rate is $7.86 per direct labor hour. In September, Crane incurred 1360 direct labor hours at a cost of $86,000 to produce 124,100 tubes of paint. Calculate Crane's direct labor rate variance for September. (Round answer to o decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Direct labor rate variance 5 Click if you would like to Show Work for this question:

Explanation / Answer

Direct labour rate variance = (Standard rate-actual rate)actual hour

= (7.86*11360-86000)

Direct labour rate variance = 3290 Favorable

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