The following information describes Alpha Manufacturing's usage of direct labor in a recent period. The direct labor rate variance is: Category Amount Actual hours used 40,000 Actual rate per hour $18.50 Standard rate per hour $17.75 Standard hours for units produced 42,000 a) $30,000 Favorable b) $30,000 Unfavorable c) $45,000 Unfavorable

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 9EB: Eagle Inc. uses a standard cost system. During the most recent period, the company manufactured...
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The following information describes Alpha Manufacturing's usage of direct labor in a
recent period. The direct labor rate variance is:
Category
Amount
Actual hours used
40,000
Actual rate per hour
$18.50
Standard rate per hour
$17.75
Standard hours for units produced 42,000
a) $30,000 Favorable
b) $30,000 Unfavorable
c) $45,000 Unfavorable
Transcribed Image Text:The following information describes Alpha Manufacturing's usage of direct labor in a recent period. The direct labor rate variance is: Category Amount Actual hours used 40,000 Actual rate per hour $18.50 Standard rate per hour $17.75 Standard hours for units produced 42,000 a) $30,000 Favorable b) $30,000 Unfavorable c) $45,000 Unfavorable
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