Fletcher Company collected the following data regarding production of one of its products.

-Compute the total direct labor cost variance.
A)$80,250 unfavorable.
B)$80,250 favorable.
C)$61,125 favorable.
D)$61,125 unfavorable.
E)$19,125 favorable.

Question

Fletcher Company collected the following data regarding production of one of its products.

-Compute the total direct labor cost variance. 
A)$80,250 unfavorable. 
B)$80,250 favorable. 
C)$61,125 favorable. 
D)$61,125 unfavorable. 
E)$19,125 favorable.

Quizplus · Accepted Answer

The total direct labor cost variance is calculated as the difference between the actual labor cost and the standard labor cost. An unfavorable variance indicates that the actual cost was higher than the standard cost, which is the case here with $80,250.

Fletcher Company Collected the Following Data Regarding Production of One