Assembly line workers at Thompson Manufacturing worked a total of 12,000 direct labor hours to produce 36,000
A)$2,400 favorable
B)$4,800 unfavorable
C)$9,450 favorable
D)$4,500 unfavorable

Question

Quizplus · Accepted Answer

The standard labor hours for producing 36,000 units is 36,000 hours (assuming 1 hour per unit). The actual hours worked were 12,000, indicating a favorable variance of 24,000 hours. If the standard labor rate is $0.10 per hour, the variance is $2,400 favorable.

Assembly Line Workers at Thompson Manufacturing Worked a Total of 12,000