The Following Data Relate to Direct Labor Costs for the Current

question 46

Multiple Choice

The following data relate to direct labor costs for the current period: $$\begin{array} { l l } \text { Standard costs } & 8,850 \text { hours at } \$ 6.50 \\\text { Actual costs } & 7,500 \text { hours at } \$ 6.25\end{array}$$ ? What is the direct labor rate variance?

• A) $1,875.00 unfavorable
• B) $2,212.50 unfavorable
• C) $1,875.00 favorable
• D) $2,212.50 favorable

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