Madrid CoHas a Direct Labor Standard of 4 Hours Per Unit

question 77

Multiple Choice

Madrid Co.has a direct labor standard of 4 hours per unit of output.Each employee has a standard wage rate of $11 per hour.During February,Madrid Co.paid $99,500 to employees for 9,150 hours worked.2,400 units were produced during February.What is the direct labor rate variance?

• A)$1,150 favorable
• B)$4,950 favorable
• C)$6,100 favorable
• D)$302 favorable

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