Variance Analysis - YaHo, Inc.; Background information for YaHo, Inc.
YaHo, Inc. has provided the following standards data concerning one of their products. Assume that all overhead costs are variable, and that variable overhead is applied to products based on direct labor (DL) hours. YaHo, Inc. planned to produce 4,650 units of this product in July.
Inputs
Standard quantity or standard hours of input per unit of output
Standard price or rate per unit of input
Direct materials
5.2 liters
$4.30 per liter
Direct labor
0.80 DL hours
$14.00 per DL hour
Variable overhead
0.80 DL hours
$2.75 per DL hour
The following are the actual results for July:
Actual output
4,450 units
Raw materials purchased and used
23,585 liters
Actual cost of raw materials purchased
$94,800
Actual direct labor hours used
4,183 DLh
Actual direct labor cost
$50,196
Actual variable overhead cost
$11,020
Use the information provided for YaHo, Inc. Calculate the direct labor spending variance for the month of July for YaHo, Inc. Please enter your answer in whole dollars. Please show all calculations.
