Question - Show works/steps used to get answer.
The following data for a pottery company pertain to the production of 2,000 clay pots during July.
Direct Materials (all materials purchased were used):
Standard cost: $6.00 per kilogram of clay
Total actual cost: $11,200
Standard cost allowed for units produced was $12,000
Materials efficiency variance was $240 unfavourable
Direct Manufacturing Labour:
Standard cost is 2 pots per hour at $24.00 per hour
Actual cost per hour was $24.50
Actual labour was 972 hours
What is the direct manufacturing labour rate variance?
a. $186 favourable
b. $486 unfavourable
c. $672 unfavourable
d. $672 favourable
e. $486 favourable