Questions 20 through 23 are based on the following informati…
Questions 20 through 23 are based on the following information: ABC Co. makes widgets. The company uses standard costing with the following standards per widget: Materials: 8 kilograms per unit at $0.80 (80 cents) per kilogram Labor: 1.5 hours per unit at $20 per hour During the month of September, the company produced and sold 1,000 units. 9,000 kilograms of materials were purchased and used in production. The total cost of the materials was $6,750. Labor costs were $33,600 and represented payment for 1,600 hours worked. The labor rate variance is: