Use the Following Data to Find the Direct Labor Rate

question 148

Multiple Choice

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

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

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