Assembly Line Workers at Thompson Manufacturing Worked a Total of 12,000

question 126

Multiple Choice

Assembly line workers at Thompson Manufacturing worked a total of 12,000 direct labor hours to produce 36,000 units. The standard for producing one unit is 15 minutes at a wage rate of $10.70. If the actual wage rate was $10.50 per direct labor hour, Thompson’s direct labor rate variance is

• A) $2,400 favorable
• B) $4,800 unfavorable
• C) $9,450 favorable
• D) $4,500 unfavorable

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