Use the Following Data to Find the Direct Labor Rate

question 54

Multiple Choice

Use the following data to find the direct labor rate variance.
$\begin{array}{ll}\text { Direct labor standard (4 hrs. @ } & \text { \$28 per unit } \\\text { \$7/hr.) } & \\\text { Actual hours worked per unit } & \text { 3.5 hours } \\\text { Actual units produced } & 3,500 \text { units } \\\text { Actual rate per hour } & \$ 7.50\end{array}$

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

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