AirSoar Company Produces Model Airplanes

question 120

Multiple Choice

AirSoar Company produces model airplanes. During August, the company produced 1,000 planes. The actual labour hours were 10 hours per plane. The company's standard labour hours are 15 hours per plane. The standard labour rate is $12 per hour. At the end of August, AirSoar found that it had a favourable labour rate variance of $7,500.
-Refer to the Figure.What was AirSoar's total labour variance?

• A)$52,500 F
• B)$55,000 F
• C)$65,000 F
• D)$67,500 F