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Question
Cabot Company collected the following data regarding production of one of its products. Compute the direct labor rate variance.
| Direct labor standard (2 hrs. @ $13/hr.) | $26 per finished unit |
| Actual direct labor hours | 81,000 hrs. |
| Actual finished units produced | 40,000 units |
| Actual cost of direct labor | $1,093,500 |
A. $53,500 unfavorable.
B. $40,500 favorable.
C. $53,500 favorable.
D. $13,000 unfavorable.
E. $40,500 unfavorable.
Answer
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Related questions
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