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

Actual units at actual cost = $1,100,250
Standard units at standard cost = 40,000 × 2 × $12.75 = $1,020,000
Labor cost variance = $80,250 unfavorable

Fletcher Company Collected the Following Data Regarding Production of One