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Europa Company manufactures only one product. Presented below is direct labor information for November: Standard direct...

Europa Company manufactures only one product. Presented below is direct labor information for November:

Standard direct labor hours per unit of product........................................................................3.90

Number of finished units produced.......................................................................................5,500

Standard wage rate per direct labor hour (SP).....................................................................$19.90

Total direct labor payroll for the period..............................................................................$385,770

Actual wage rate per direct labor hour worked (AP)..............................................................$16.70

The direct labor rate variance for November (to the nearest dollar) was:

a. $23,100 unfavorable

b. $32,835 unfavorable

c. $41,085 favorable

d. 73,920 favorable

e. $106,755 favorable

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Answer #1

Variance Analysis Data Standard Rate Actual hours Worked (385770/16.70) Actual Rate 19.90 Per hour 23100 hours 16.70 Per hour

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