The Standard Direct Labor Cost for Producing One Unit of Product

question 39

Multiple Choice

The standard direct labor cost for producing one unit of product is 5 direct labor hours at a standard rate of pay of $12. Last month, 15,000 units were produced and 73,500 direct labor hours were actually worked at a total cost of $810,000. The direct labor quantity variance was

• A) $18,000 unfavorable.
• B) $27,000 unfavorable.
• C) $27,000 favorable.
• D) $18,000 favorable.

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Definitions:

Source Inspection

Controlling or monitoring at the point of production or purchase— at the source.

User-Based Definition

A user-based definition refers to the explanation or interpretation of a concept, term, or system based on the perspective or use case of the end-user.