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  • Dec 13, 2007, 08:57 AM
    rrusche
    Direct labor rate variance
    Anyone know the ratio?

    McNair Company produces fine leather footballs. The standard cost for each football is: Direct material--2 feet of leather at $4.00/foot--$8.00; Direct labor--1.5 hours at $12.00/hour--$18.00. During February, 1,200 footballs were produced. 2,600 feet of leather were purchased at $4.25 per foot. Of this, 2,300 feet were used in production. Direct labor cost incurred was $20,930 for 1,820 hours. What is the direct labor rate variance?

    Selected Answer: $910 unfavorable

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