Answer the following question(s) using the information below.
Apple Valley Orchards, Inc. (AVO), developed standard costs for direct material and direct labour. In 2016, AVO estimated the following standard costs for one of their most well loved products, the AVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples.

During September 2017, AVO produced and sold 1,200 pies using 1,875 kilograms of direct materials at an average cost per kilogram of $7.00 and 280 direct labour hours at an average wage of $14.25 per hour.
-September's direct labour rate variance is
A) $75.00 unfavourable.
B) $75.00 favourable.
C) $70.00 unfavourable.
D) $70.00 favourable.
E) $90.00 unfavourable.

Question

Answer the following question(s) using the information below.
Apple Valley Orchards, Inc. (AVO), developed standard costs for direct material and direct labour. In 2016, AVO estimated the following standard costs for one of their most well loved products, the AVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples.
  
During September 2017, AVO produced and sold 1,200 pies using 1,875 kilograms of direct materials at an average cost per kilogram of $7.00 and 280 direct labour hours at an average wage of $14.25 per hour.
-September's direct labour rate variance is
A) $75.00 unfavourable. 
B) $75.00 favourable. 
C) $70.00 unfavourable. 
D) $70.00 favourable. 
E) $90.00 unfavourable.

Quizplus · Accepted Answer

280 dlh × ($14.25 - $14.00) = $70 U

Answer the Following Question(s) Using the Information Below