A Job Was Budgeted to Require 3 Hours of Labor

question 25

Multiple Choice

A job was budgeted to require 3 hours of labor per unit at $11.00 per hour.The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $269,500.What is the direct labor rate variance?

• A)$27,500 unfavorable.
• B)$22,000 favorable.
• C)$16,000 unfavorable.
• D)$16,000 favorable.
• E)$6,000 unfavorable.

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