A company makes table lamps, for which the following standards have been developed: ...

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Accounting

A company makes table lamps, for which the following standards have been developed:

Standard Inputs Expected for Each Unit of Output Standard Price Expected per Unit of Output
Direct materials 20 kilograms $2 per kilogram
Direct labour 6 hours $8 per hour

During January, production of 100 lamps was expected, but 110 lamps were actually completed. Direct materials purchased and used were 2,100 kilograms at an actual price of $2.20 per kilogram. Direct labour cost for the month was $5,310, and the actual pay per hour was $9.00. The direct-material rate variance for January is

Question 23Select one:

a.

$400 unfavourable.

b.

$20 favourable.

c.

$400 favourable.

d.

$420 unfavourable.

e.

$420 favourable.

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