Information for Garner Company's direct labor costs for the month of September 2005 was as follows: Actual direct labor hours Standard direct labor hours Total direct labor payroll 34,500 hours 35,000 hours $241,500 Direct labor efficiency variance favorable $3,200 What is Garner's direct labor price (or rate) variance? a. $21,000 favorable b. $21,000 unfavorable c. $17,250 unfavorable d. $20,700 unfavorable

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 8PA: Breakaway Companys labor information for May is as follows: A. What is the actual direct labor rate...
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Information for Garner Company's direct labor costs for the
month of September 2005 was as follows:
Actual direct labor hours
Standard direct labor hours
Total direct labor payroll
34,500 hours
35,000 hours
$241,500
Direct labor efficiency variance favorable $3,200
What is Garner's direct labor price (or rate) variance?
a. $21,000 favorable
b. $21,000 unfavorable
c. $17,250 unfavorable
d. $20,700 unfavorable
Transcribed Image Text:Information for Garner Company's direct labor costs for the month of September 2005 was as follows: Actual direct labor hours Standard direct labor hours Total direct labor payroll 34,500 hours 35,000 hours $241,500 Direct labor efficiency variance favorable $3,200 What is Garner's direct labor price (or rate) variance? a. $21,000 favorable b. $21,000 unfavorable c. $17,250 unfavorable d. $20,700 unfavorable
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