Neighborhood Farming LLC. manufactures frozen vegetables and provided the following information related to their direct labor costs:   Rate Hour per unit Standard $15.60 0.80 Actual  $17.00 0.60 Actual production was 6,000 units of packaged vegetables while the planned production was 5,000 units. Determine the direct labor cost variance. Group of answer choices $13,680 unfavorable -$18,720 favorable $18,720 unfavorable -$13,680 favorable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Neighborhood Farming LLC. manufactures frozen vegetables and provided the following information related to their direct labor costs:

  Rate Hour per unit
Standard $15.60 0.80
Actual  $17.00 0.60

Actual production was 6,000 units of packaged vegetables while the planned production was 5,000 units.

Determine the direct labor cost variance.

Group of answer choices
$13,680 unfavorable
-$18,720 favorable
$18,720 unfavorable
-$13,680 favorable
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