Refer to the information provided for Efficient Corporation.The total direct labor variance is:
A)$216,000 favorable.
B)$32,400 favorable.
C)$89,100 unfavorable.
D)$121,500 unfavorable.

Question

Quizplus · Accepted Answer

The total direct labor variance is the difference between the actual direct labor cost and the standard direct labor cost. 
Total direct labor variance = Actual direct labor cost - (Standard direct labor rate × Actual direct labor hours) 
Total direct labor variance = $1,864,000 - ($26 × 72,000) 
Total direct labor variance = $1,864,000 - $1,992,000 
Total direct labor variance = $89,100 unfavorable.

Refer to the Information Provided for Efficient Corporation