Question

Use the following data to find the total direct labor cost variance if the company produced 3,500 units during the period.
Direct labor standard (4 hrs. @ $7/hr.) $28 per unit
Actual hours worked 12,250
Actual rate per hour $7.50

A.$ 6,125 unfavorable.
B.$ 7,000 unfavorable.
C.$ 7,000 favorable.
D.$12,250 favorable.
E.$ 6,125 favorable.

Answer

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