The following data relate to direct labor costs for the current period: Standard costs 7,200 hours at $12.30 Actual costs 6,350 hours at $10.00 What is the direct labor rate variance? a. $23,000 unfavorable b. $7,320 favorable c. $14,605 favorable d. $15,680 favorable

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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What is the direct labor rate variance?

The following data relate to direct labor costs for the
current period:
Standard costs 7,200 hours at $12.30
Actual costs
6,350 hours at $10.00
What is the direct labor rate variance?
a. $23,000 unfavorable
b. $7,320 favorable
c. $14,605 favorable
d. $15,680 favorable
Transcribed Image Text:The following data relate to direct labor costs for the current period: Standard costs 7,200 hours at $12.30 Actual costs 6,350 hours at $10.00 What is the direct labor rate variance? a. $23,000 unfavorable b. $7,320 favorable c. $14,605 favorable d. $15,680 favorable
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