Ally Mfguses a Standard Cost System and Its July Production of of 1,800

question 23

Multiple Choice

Ally Mfg.uses a standard cost system and its July production of 1,800 units involved actual direct labor costs of $242,000 for 5,500 hours worked.The budget for July called for production of 2,000 units with 6,000 direct labor hours at $40.00 per hour.
Ally's direct labor rate variance for July is:

• A)$2,000 unfavorable.
• B)$4,000 unfavorable.
• C)$20,000 favorable.
• D)$22,000 unfavorable.
• E)$26,000 unfavorable.

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