The Actual Cost of Direct Labor Per Hour Is $16

question 101

Multiple Choice

The actual cost of direct labor per hour is $16.00 and the standard cost of direct labor per hour is $15.50.The direct labor hours allowed per finished unit is 0.5 hour.During the current period,5,500 units of finished goods were produced using 3,000 direct labor hours.How much is the direct labor efficiency variance?

• A)$3,875 unfavorable
• B)$3,875 favorable
• C)$4,000 favorable
• D)$4,000 unfavorable

---

Definitions:

Posterior

Pertaining to the back side of the body or an organ, opposite of anterior.

Coracobrachialis

A muscle in the shoulder that helps in flexing and adducting the arm.

Pectoralis Major

A large muscle in the upper chest that functions in the movement of the shoulder and upper arm.

Deltoid

A large, triangular muscle covering the shoulder joint and responsible for lifting and rotating the arm.