The Actual Cost of Direct Labor Per Hour Is $18

question 199

Multiple Choice

The actual cost of direct labor per hour is $18.00 and the standard cost of direct labor per hour is $9.00. The direct labor hours allowed per finished unit is 0.25 hour. During the current period, 5500 units of finished goods were produced using 2500 direct labor hours. How much is the direct labor rate variance?

• A)$22,500 favorable
• B)$49,500 favorable
• C)$22,500 unfavorable
• D)$49,500 unfavorable

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