Montana Company uses a standard costing system. The following information pertains to direct labor costs for the month of February: Standard direct labor rate per hour $15.00
Actual direct labor rate per hour $13.50
Labor rate variance $18,000 favorable
Actual output 1,000 units
Standard hours allowed for actual production 10,000 hours
What is the total labor budget variance for Montana Company?
A) $18,000 (F)
B) $12,000 (U)
C) $18,000 (U)
D) $12,000 (F)

Question

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The Answer of Montana Company uses a standard costing system. The following information pertains to direct labor costs for the month of February: Standard direct labor rate per hour $15.00
Actual direct labor rate per hour $13.50
Labor rate variance $18,000 favorable
Actual output 1,000 units
Standard hours allowed for actual production 10,000 hours
What is the total labor budget variance for Montana Company?
A) $18,000 (F)
B) $12,000 (U)
C) $18,000 (U)
D) $12,000 (F)

Montana Company Uses a Standard Costing System