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Given

Aco manufactures blankets. Manufacturing standards per blanket, based on 5,000 blankets per month as

follows

Direct material of 3 yards at $5,00 per yard

Direct labor of 2,50 hours at $17,00 per hour

Overhead applied per blanket at $17,00

In the month of April, the company actually produced 5,100 sleeping bags using 27,000 yards of material at a cost of $5.50 per yard/ The labor used was 11,500 hours at an average rate of $17.25 per hour. The actual overhead spending was $96,000.


Determine

Labor rate variance

Enter favorable variance as a negative number

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