Blue Company produces picture frames. During the year, 250,000 picture frames were produced. Materials and labor standards for producing the picture frames are as follows: Direct materials (2 pieces of wood @ $3) $6.00 Direct labor (2 hours @ $14.50) $29.00 Blue purchased and used 600,000 pieces of wood at $2.5 each, and its actual labor hours were 400,000 hours at a wage rate of $15.00. What is Blue's total labor variance? a.$1,250,000 F b.$1,500,000 U c.$1,430,500 F d.$2,300,000 U

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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  1. Blue Company produces picture frames. During the year, 250,000 picture frames were produced. Materials and labor standards for producing the picture frames are as follows:

    Direct materials (2 pieces of wood @ $3) $6.00
    Direct labor (2 hours @ $14.50) $29.00

    Blue purchased and used 600,000 pieces of wood at $2.5 each, and its actual labor hours were 400,000 hours at a wage rate of $15.00.

    What is Blue's total labor variance?
    a.$1,250,000 F
    b.$1,500,000 U
    c.$1,430,500 F
    d.$2,300,000 U
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