The Following Information Describes a Company's Usage of Direct Labor

question 48

Multiple Choice

The following information describes a company's usage of direct labor in a recent period: $$\begin{array} { | l | l | } \hline \text { Actual direct labor hours used } & 32,500 \\\hline \text { Actual rate per hour } & \$ 18.00 \\\hline \text { Standard rate per hour } & \$ 16.50 \\\hline \text { Standard hours for urits produced } & 32,000 \\\hline\end{array}$$
- How much is the direct labor price variance?

• A)$48,000 favorable
• B)$48,750 favorable
• C)$48,000 unfavorable
• D)$48,750 unfavorable

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