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Business, 18.06.2020 16:57 Messick127
Miguez Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or RateStandard Cost Per Unit Direct materials 3.2liters$7.90per liter$25.28 Direct labor 0.4hours$31.00per hour$12.40 Variable overhead 0.4hours$2.90per hour$1.16 The company budgeted for production of 3,500 units in September, but actual production was 3,400 units. The company used 6,340 liters of direct material and 1,770 direct labor-hours to produce this output. The company purchased 6,700 liters of the direct material at $8.10 per liter. The actual direct labor rate was $33.10 per hour and the actual variable overhead rate was $2.70 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for September is:
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