he following data are given for harry company: line item description value budgeted production 26,000 units actual production 27,500 units materials: standard price per ounce $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 $22.00 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 Standard variable overhead rate $24.50 per standard labor hour
Actual variable overhead costs $4,520,000
Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.)
The direct labor rate variance is
a.$33,000 unfavorable
b.$5,490 favorable
c.$5,490 unfavorable
d.$33,000 favorable
