Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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The actual cost of direct labor per hour is $18 and the standard
cost of direct labor per hour is $14.50. The direct labor hours
allowed per finished unit is 0.75 hours. During the current
period, 5,100 units of finished goods were produced using 2,800
direct labor hours.
How much is the direct labor rate variance?
A. $9,800 favorable
B. $17,850 favorable
C. $17,850 unfavorable
D. $9,800 unfavorable
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Transcribed Image Text:The actual cost of direct labor per hour is $18 and the standard cost of direct labor per hour is $14.50. The direct labor hours allowed per finished unit is 0.75 hours. During the current period, 5,100 units of finished goods were produced using 2,800 direct labor hours. How much is the direct labor rate variance? A. $9,800 favorable B. $17,850 favorable C. $17,850 unfavorable D. $9,800 unfavorable
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