Jaxson Corporation has the following data related to direct labor costs for September: actual costs for 10,200 hours at $15.75 per hour and standard costs for 10,800 hours at $15.50 per hour. The direct labor time variance is
A)$9,300 favorable
B)$9,300 unfavorable
C)$9,450 favorable
D)$9,450 unfavorable

Question

Jaxson Corporation has the following data related to direct labor costs for September: actual costs for 10,200 hours at $15.75 per hour and standard costs for 10,800 hours at $15.50 per hour.​ The direct labor time variance is
A)$9,300 favorable
B)$9,300 unfavorable
C)$9,450 favorable
D)$9,450 unfavorable

Quizplus · Accepted Answer

The direct labor time variance is calculated as (Standard Hours - Actual Hours) x Standard Rate. Here, (10,800 - 10,200) x $15.50 = $9,300 favorable.

Jaxson Corporation Has the Following Data Related to Direct Labor