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

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

Claire Company Uses a Standard Costing System - What Is the Total Labour Budget Variance for Claire