Accurate Tax Returns Budgets 2 Direct Labor Hours for Every

question 156

Multiple Choice

Accurate Tax Returns budgets 2 direct labor hours for every tax return that it prepares, at a standard cost of $32 an hour. During the most recent year, 500 returns were completed with the labor cost totaling $18,000. The actual labor cost was $36 per hour during that period. The actual number of labor hours was 1,000. What was the direct labor cost variance?

• A)$2,000 F
• B)$32,000 U
• C)$4,000 U
• D)$32,000 F

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