The following data relate to direct labor costs for the production period: ⚫ Standard costs: 5,200 hours at $14.50 ⚫ Actual costs: 5,850 hours at $13.75 What is the direct labor time variance? a. $9,425 unfavorable b. $4,388 favorable c. $9,425 favorable d. $4,388 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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Please explain the solution to this general accounting problem using the correct accounting principles.

The following data relate to direct labor costs for the production period:
⚫ Standard costs: 5,200 hours at $14.50
⚫ Actual costs: 5,850 hours at $13.75
What is the direct labor time variance?
a. $9,425 unfavorable
b. $4,388 favorable
c. $9,425 favorable
d. $4,388 unfavorable
Transcribed Image Text:The following data relate to direct labor costs for the production period: ⚫ Standard costs: 5,200 hours at $14.50 ⚫ Actual costs: 5,850 hours at $13.75 What is the direct labor time variance? a. $9,425 unfavorable b. $4,388 favorable c. $9,425 favorable d. $4,388 unfavorable
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