A Job Was Budgeted to Require 3 Hours of Labor

question 147

Multiple Choice

A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000. What is the total labor cost variance?

• A) $2,000 unfavorable.
• B) $3,000 unfavorable.
• C) $6,000 unfavorable.
• D) $8,000 unfavorable.
• E) $9,000 unfavorable.

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Definitions:

Wagner Act

Also known as the National Labor Relations Act (NLRA), it is a foundational statute of US labor law which guarantees basic rights of private sector employees to organize into trade unions.

Labor Organizations

Groups such as unions that represent workers in negotiations with employers over wages, working conditions, and benefits.

Fourth Amendment

An amendment to the U.S. Constitution that protects citizens from unreasonable searches and seizures by the government.

Drug Testing

The process of analyzing biological specimens to detect the presence of drugs or their metabolites, usually conducted by employers or law enforcement.