The Following Data Relate to Direct Labor Costs for March

question 89

Multiple Choice

The following data relate to direct labor costs for March:
Rate: standard, $12.00; actual, $12.25
Hours: standard, 18,500; actual, 17,955
Units of production: 9,450
Calculate the total direct labor variance.

• A) $2,051.25 favorable
• B) $2,051.25 unfavorable
• C) $2,362.50 unfavorable
• D) $2,362.50 favorable

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Definitions:

Foreign Currency

Currency used in a country other than the domestic one, impacting transactions, accounting, and financial reporting.

Extraordinary Items

Unusual and infrequent gains or losses that are reported separately on a company's income statement.

Uncollectible Accounts

Accounts receivable that a company is unable to collect, often leading to a write-off as a bad debt expense.

Expropriation

The governmental seizure of private property without the owner's consent, often with compensation.