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Shade Company Adopted a Standard Cost System Several Years Ago

question 65

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Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms × $12.00/kilogram) = $60.00/unit; direct labor (3.5 hours/unit × $20.00/hour) = $70.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December: Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms × $12.00/kilogram)  = $60.00/unit; direct labor (3.5 hours/unit × $20.00/hour)  = $70.00/unit. All materials are issued at the beginning of processing. The operating data shown below were taken from the records for December:  The direct labor rate variance for December, to the nearest dollar, was: A)  $1,590 favorable. B)  $5,650 favorable. C)  $7,790 unfavorable. D)  $24,410 unfavorable. E)  $59,410 unfavorable. The direct labor rate variance for December, to the nearest dollar, was:

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