Saxena Corporation Makes a Product That Has the Following Direct

question 339

Multiple Choice

Saxena Corporation makes a product that has the following direct labor standards: The company budgeted for production of 2,900 units in July, but actual production was 2,800 units. The company used 250 direct labor-hours to produce this output. The actual direct labor rate was $14.10 per hour.The labor rate variance for July is:

• A) $252 Unfavorable
• B) $225 Unfavorable
• C) $225 Favorable
• D) $252 Favorable

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