Use the Following Data to Find the Direct Labor Rate

question 121

Multiple Choice

Use the following data to find the direct labor rate variance if the company produced 3,500 units during the period. Direct labor standard (4 hrs. @ $7/hr.) $ 28 per unit Actual hours worked 12,250
Actual rate per hour $ 7.50

• A) $7,000 unfavorable.
• B) $7,000 favorable.
• C) $6,125 unfavorable.
• D) $12,250 favorable.
• E) $6,125 favorable.