Question
Strawberry Mansion Company reported the following:

Standard hours per unit 2.5 hours
Standard rate per hour $16.00
Actual hours used 12,560
Actual rate per hour $15.50
Number of units produced 4,900

Determine the direct labor rate variance.
a.$6,280 favorable
b.$6,125 favorable
c.$6,125 unfavorable
d.$6,280 unfavorable

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Variance Analysis

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