MacBeth Fabrics budgeted to manufacture 1,400 curtains in February.Actual output for March was 1,575 curtains with total direct materials cost of $3,400 and total direct labor cost of $5,250.The direct labor standard is 20 minutes per curtain at a direct labor rate of 17.50 per hour.The direct material standard is 0.75 yards of direct materials per curtain at a cost of $13 per pound.Actual direct labor hours were 275.A variance analysis for February may show a direct labor rate variance of

Question

Quizplus · Accepted Answer

D)
Labor rate variance = (Actual rate per hour - Standard rate per hour)× actual h
$438 U = ({$5,250 / 275} - $17.50)× 275

MacBeth Fabrics Budgeted to Manufacture 1,400 Curtains in February