The data below relate to the month of November for Badong, Inc. which uses a standard cost system:               Actual direct labor cost, P43,400

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The data below relate to the month of November for Badong, Inc. which uses a standard cost system:

 

            Actual direct labor cost, P43,400
            Actual hours used, 14,000
            Standard hours allowed for good output, 15,000
            Direct labor rate variance – debit, 1,400
            Actual total overhead, 32,000
            Budgeted fixed cost, 9,000
            Normal activity in hours, 12,000
            Total application rate per standard direct labor hour, 2.25

 

Badong uses a two-way analysis of overhead variance.

 

What was Badong’s direct labor usage variance for November?

a. P3,200 favorable
b. P3,200 unfavorable
c. P3,000 unfavorable
d. P3,000 favorable
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