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

The Labor Rate Variance is calculated as the difference between the actual labor rate and the standard labor rate, multiplied by the actual hours worked. A credit indicates a favorable variance, meaning the actual rate was less than the standard rate, resulting in a saving.

Cafferty Corporation Has Provided the Following Data Concerning Its Direct