DM is a denim brand specializing in the manufacture and sale of hand-stitched jeans trousers.
DM manufactured and sold 10,000 pairs of jeans during a period.
Information relating to the direct labor cost and production time per unit is as follows:
Actual Hours
Per Unit Standard Hours
Per Unit Actual Rate
Per Hour Standard Rate
Per Hour
Direct Labor 0.50 0.60 $12 $10
Compute the labor rate variance