Cafferty Corporation has provided the following data concerning its direct labor costs for March: The Labor Rate Variance for March would be recorded as a:
A)Credit of $855
B)Credit of $780
C)Debit of $780
D)Debit of $855

Question

Cafferty Corporation has provided the following data concerning its direct labor costs for March:  The Labor Rate Variance for March would be recorded as a:
A)Credit of $855 
B)Credit of $780 
C)Debit of $780 
D)Debit of $855

Quizplus · Accepted Answer

Labor rate variance = AH × (AR - SR)
= 2,850 DLHs × ($12.50 per DLH - $12.80 per DLH)
= 2,850 DLHs × (($0.30)per DLH)
= $855 F
A favorable variance is credite

Cafferty Corporation Has Provided the Following Data Concerning Its Direct