Use the following to answer questions
BAK Systems, Inc. gathered the following direct labor cost information for the month of July:

-The direct labor usage variance is:
A)$15,275U
B)$23,975U
C)$15,730F
D)$23,520F

Question

Use the following to answer questions 
BAK Systems, Inc. gathered the following direct labor cost information for the month of July:
 
-The direct labor usage variance is:
A)$15,275U 
B)$23,975U 
C)$15,730F 
D)$23,520F

Quizplus · Accepted Answer

The direct labor usage variance is calculated as the difference between the actual hours worked at the standard rate and the standard hours allowed for actual production at the standard rate. The "U" indicates an unfavorable variance, meaning that the actual labor used was more than what was expected or budgeted for the level of production achieved.

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