Montana Company uses a standard costing system. The following information pertains to direct labor costs for the month of February: $$\begin{array} { l l }
\text { Standard direct labor rate per hour } & \$ 15.00 \
\text { Actual direct labor rate per hour } & \$ 13.50 \
\text { Labor rate variance } & \$ 18,000 \text { favorable } \
\text { Actual output } & 1,000 \text { units } \
\text { Standard hours all owed for actual production } & 10,000 \text { hours }
\end{array}$$ What is the total labor budget variance for Montana Company?
A)$18,000 (F)
B)$12,000 (U)
C)$18,000 (U)
D)$12,000 (F)

Question

Montana Company uses a standard costing system. The following information pertains to direct labor costs for the month of February: $$\begin{array} { l l } 
\text { Standard direct labor rate per hour } & \$ 15.00 \
\text { Actual direct labor rate per hour } & \$ 13.50 \
\text { Labor rate variance } & \$ 18,000 \text { favorable } \
\text { Actual output } & 1,000 \text { units } \
\text { Standard hours all owed for actual production } & 10,000 \text { hours }
\end{array}$$ What is the total labor budget variance for Montana Company?
A)$18,000 (F)
B)$12,000 (U)
C)$18,000 (U)
D)$12,000 (F)

Quizplus · Accepted Answer

The Answer of Montana Company uses a standard costing system. The following information pertains to direct labor costs for the month of February: $$\begin{array} { l l } 
\text { Standard direct labor rate per hour } & \$ 15.00 \
\text { Actual direct labor rate per hour } & \$ 13.50 \
\text { Labor rate variance } & \$ 18,000 \text { favorable } \
\text { Actual output } & 1,000 \text { units } \
\text { Standard hours all owed for actual production } & 10,000 \text { hours }
\end{array}$$ What is the total labor budget variance for Montana Company?
A)$18,000 (F)
B)$12,000 (U)
C)$18,000 (U)
D)$12,000 (F)

Montana Company Uses a Standard Costing System What Is the Total Labor Budget Variance for Montana Company