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?

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter8: Standard Costs And Variances
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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?
O P3,200 favorable
P3,000 unfavorable
O P3,200 unfavorable
O P3,000 favorable
Transcribed Image Text: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? O P3,200 favorable P3,000 unfavorable O P3,200 unfavorable O P3,000 favorable
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