Sanchez Company's output for the current period was assigned a $400,000 standard direct labor cost.The direct labor variances included a $10,000 unfavorable direct labor rate variance and a $4,000 favorable direct labor efficiency variance.What is the actual total direct labor cost for the current period?
A)$414,000.
B)$386,000.
C)$394,000.
D)$406,000.
E)$410,000.

Question

Quizplus · Accepted Answer

Standard direct labor cost = $400,000
Unfavorable direct labor rate variance = $10,000
Favorable direct labor efficiency variance = $4,000
Actual total direct labor cost = Standard direct labor cost + Direct labor rate variance + Direct labor efficiency variance
Actual total direct labor cost = $400,000 + (-$10,000) + $4,000 = $394,000
Therefore, the answer is D) $406,000.

Sanchez Company's Output for the Current Period Was Assigned a $400,000