The following data relate to direct labor costs for March:
Rate: standard, $12.00; actual, $12.25
Hours: standard, 18,500; actual, 17,955
Units of production: 9,450
Calculate the total direct labor variance.
A) $2,051.25 favorable
B) $2,051.25 unfavorable
C) $2,362.50 unfavorable
D) $2,362.50 favorable

Question

Quizplus · Accepted Answer

The total direct labor variance is calculated as follows:Total direct labor variance = (Actual rate - Standard rate) x Actual hours + (Actual hours - Standard hours) x Standard rate= ($12.25 - $12.00) x 17,955 + (17,955 - 18,500) x $12.00= $2,051.25 unfavorable

The Following Data Relate to Direct Labor Costs for March