Super Company Produces 2,500 Units

question 129

Multiple Choice

Super Company produces 2,500 units.Each unit was expected to require 2 labor hours at a cost of $10 per hour.Total labor cost was $55,250 for 4,750 hours worked.Direct labor is measured in hours._____ is the total flexible-budget variance for direct labor.

• A)$5,250 favorable
• B)$5,250 unfavorable
• C)$7,500 favorable
• D)None of these answers is correct

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