Frames Incorporated Budgeted Two Hours of Direct Labor Per Unit

question 15

Multiple Choice

Frames Incorporated budgeted two hours of direct labor per unit at $10.75 per hour to produce 600 units of product. The 600 units were completed using 1800 hours of direct labor at $13.00 per hour. What is the direct labor efficiency variance?

• A)$6450 unfavorable
• B)$6450 favorable
• C)$7800 unfavorable
• D)$7800 favorable

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