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

question 1

Multiple Choice

The following information describes a company's usage of direct labor in a recent period. The direct labor rate variance is: $\begin{array}{llr} \text { Actual hours used } &45,000\\ \text { Actual rate per hour} &\$15.00\\ \text {Standard rate per hour } &\$14.50\\ \text {Standard hours for units produced } &47,000\\\end{array}$

• A) $52,500 favorable.
• B) $22,500 unfavorable.
• C) $29,000 unfavorable.
• D) $29,000 favorable.
• E) $52,500 unfavorable.

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