The direct labour rate variance for January is
A company makes bulk cookies sold in restaurants. The following standards have been developed:
Standard Inputs for Each batch of cookies
Standard price per input
$2 per kilogram
$15 per hour
Each batch of cookies contains 1,000 cookies. During January, production of 100,000 cookies was planned, but 105,000 cookies were actually made. At an actual price of $2.15 per kilogram, 2,250 kilograms of direct materials were purchased and used. The total direct labour cost for the month was $5,600, and the actual pay per hour was $14.00.
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