The following data relate to direct labor costs for the current period: Standard costs 8,250 hours at $14.80 Actual costs 7,940 hours at $15.30 What is the direct labor rate variance? a) $13,577 unfavorable b) 413,577 favorable c) $7,673 favorable d) $3,970 unfavorable

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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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 8,250 hours at $14.80
Actual costs
7,940 hours at $15.30
What is the direct labor rate variance?
a) $13,577 unfavorable
b) 413,577 favorable
c) $7,673 favorable
d) $3,970 unfavorable
Transcribed Image Text:The following data relate to direct labor costs for the current period: Standard costs 8,250 hours at $14.80 Actual costs 7,940 hours at $15.30 What is the direct labor rate variance? a) $13,577 unfavorable b) 413,577 favorable c) $7,673 favorable d) $3,970 unfavorable
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