The standard rate of pay is $12 per direct labor hour. If the actual direct labor payroll was $51744 for 4400 direct labor hours worked, the direct labor price (rate) variance is: a. $1200 unfavorable. b. $1056 unfavorable. c. $1200 favorable. d. $1056 favorable.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 7PA: Ellis Companys labor information for September is as follows: A. Compute the standard direct labor...
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The standard rate of pay is $12 per direct labor hour. If the actual direct labor payroll was $51744 for 4400 direct labor hours worked, the
direct labor price (rate) variance is:
a. $1200 unfavorable.
b. $1056 unfavorable.
c. $1200 favorable.
d. $1056 favorable.
Transcribed Image Text:The standard rate of pay is $12 per direct labor hour. If the actual direct labor payroll was $51744 for 4400 direct labor hours worked, the direct labor price (rate) variance is: a. $1200 unfavorable. b. $1056 unfavorable. c. $1200 favorable. d. $1056 favorable.
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