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Harris Manufacturing produces white sauce. It uses units as the cost driver for overhead. The...

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Question

Accounting

Harris Manufacturing produces white sauce. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost system for 2020:

Budgeted and Standard Data

Actual Data

Material

1/4 lb. @ $14 per pound

Produced

6,200 units

Labor

1.4 hrs. @ $16 per hour

Materials purchased

1,600 lbs. for $13.70/ pound

Total fixed overhead

$84,000

Materials used

1,520 lbs.

Variable overhead

$6.50 per unit

Labor worked

8,740 hrs. at $15.90/hour

Production

6,000 units

Total overhead

$122,000

How much is the direct labor rate variance for 2020?

$874 favorable

$86 unfavorable

$960 unfavorable

$5,440 unfavorable

How much is the overhead controllable variance for 2020?

$2,300 favorable

$2,800 favorable

$500 favorable

$5,100 favorable

Answer & Explanation Solved by verified expert
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