The following data is given for the Harry Company:
Budgeted production |
1,057 units |
Actual production |
913 units |
Materials: |
|
Standard price per ounce |
$1.75 |
Standard ounces per completed unit |
11 |
Actual ounces purchased and used in production |
9,742 |
Actual cost of materials |
$19,971 |
Labor: |
|
Standard hourly labor rate |
$15.00 per hour |
Standard hours allowed per completed unit |
4.0 |
Actual labor hours worked |
4,701.95 |
Actual total labor costs |
$71,705 |
Overhead: |
|
Actual and budgeted fixed overhead |
$1,038,796 |
Standard variable overhead rate |
$26.00 per standard labor hour |
Actual variable overhead costs |
$131,655 |
Overhead is applied on standard labor hours. |
Determine the direct labor rate variance.