A Job Was Budgeted to Require 3 Hours of Labor

question 140

Multiple Choice

A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000.
-What is the direct labor rate variance?

• A) $16,000 unfavorable.
• B) $22,000 unfavorable.
• C) $6,000 unfavorable.
• D) $22,000 favorable.
• E) $16,000 favorable.

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Definitions:

Accord

An agreement in law, specifically one that settles a dispute between parties by mutual consent.

Satisfaction

The fulfillment or gratification of a desire, need, or appetite.

Consideration

Something of value that is exchanged between parties in a contract, making the agreement legally binding and enforceable.

Dangerously Obese

A condition characterized by an extremely high body mass index (BMI), posing serious health risks.