ABC Company produces a single product and uses a standard costing system. ABC Company reported the...

Transcribed Image Text:

ABC Company produces a single product and uses a standard costing system. ABC Company reported the following information for June: 1. 3,200 units of product were produced during June. 2. The direct material inventory at June 1 consisted of 6,700 pounds of materials. At June 30, the direct material inventory consisted of 5,900 pounds of materials. 3. During June, 20,700 direct labor hours were worked at a total cost of $316,710. 4. During June, 26,400 pounds of direct materials were purchased at a cost of $14.10 per pound. The company has established the following standards for each unit of product that is produced: standard quantity/hours standard price/rate 8 pounds direct materials direct labor 6 hours variable overhead 6 hours For the month of June, ABC Company reported the following variances: a. Direct material price variance = $22,440 favorable b. Direct labor efficiency variance = $21,270 unfavorable c. Variable overhead spending variance = $6,340 favorable d. Variable overhead efficiency variance = $19,200 unfavorable ??? ??? ??? Calculate the direct labor rate variance for June. If the variance is favorable, place a minus sign in front of your answer (i.e., -5000). If the variance is unfavorable, simply enter your answer as a number (i.e., 5000). Quiz scores will not be adjusted for failing to follow these directions. ABC Company produces a single product and uses a standard costing system. ABC Company reported the following information for June: 1. 3,200 units of product were produced during June. 2. The direct material inventory at June 1 consisted of 6,700 pounds of materials. At June 30, the direct material inventory consisted of 5,900 pounds of materials. 3. During June, 20,700 direct labor hours were worked at a total cost of $316,710. 4. During June, 26,400 pounds of direct materials were purchased at a cost of $14.10 per pound. The company has established the following standards for each unit of product that is produced: standard quantity/hours standard price/rate 8 pounds direct materials direct labor 6 hours variable overhead 6 hours For the month of June, ABC Company reported the following variances: a. Direct material price variance = $22,440 favorable b. Direct labor efficiency variance = $21,270 unfavorable c. Variable overhead spending variance = $6,340 favorable d. Variable overhead efficiency variance = $19,200 unfavorable ??? ??? ??? Calculate the direct labor rate variance for June. If the variance is favorable, place a minus sign in front of your answer (i.e., -5000). If the variance is unfavorable, simply enter your answer as a number (i.e., 5000). Quiz scores will not be adjusted for failing to follow these directions.

Answer rating: 100% (QA)

SOLUTION To calculate the direct labor rate variance we first need to determine the standard rate per hour The total cost of direct labor for June is ... View the full answer