Shia Company Makes a Product That Is Expected to Require

question 111

Multiple Choice

Shia Company makes a product that is expected to require 2 hours of labor per unit of product.The standard cost of labor is $5.20.Shia actually used 2.1 hours of labor per unit of product.The actual cost of labor was $5.30 per hour.Shia made 1,000 units of product during the period.Based on this information alone,the labor price variance is:

• A) $200 unfavorable.
• B) $200 favorable.
• C) $210 favorable.
• D) $210 unfavorable.

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