The following data relate to direct labor costs for the current period: Standard

Question

The following data relate to direct labor costs for the current period: Standard costs 36,000 hours at $22.50 Actual costs 35,000 hours at $23.00 What is the direct labor time variance? a. $22,500 favorable b. $5,000 favorable c. $17,500 unfavorable d. $18,000 unfavorable The following data relate to direct labor costs for the current period: Standard costs 36,000 hours at $22.50 Actual costs 35,000 hours at $23.00 What is the direct labor time variance? a. $22,500 favorable b. $5,000 favorable c. $17,500 unfavorable d. $18,000 unfavorable The following data relate to direct labor costs for the current period: Standard costs 36,000 hours at $22.50 Actual costs 35,000 hours at $23.00 What is the direct labor time variance? a. $22,500 favorable b. $5,000 favorable c. $17,500 unfavorable d. $18,000 unfavorable The following data relate to direct labor costs for the current period: Standard costs 36,000 hours at $22.50 Actual costs 35,000 hours at $23.00 What is the direct labor time variance? a. $22,500 favorable b. $5,000 favorable c. $17,500 unfavorable d. $18,000 unfavorable The following data relate to direct labor costs for the current period: Standard costs 36,000 hours at $22.50 Actual costs 35,000 hours at $23.00 What is the direct labor time variance? Standard costs 36,000 hours at $22.50 Actual costs 35,000 hours at $23.00

Explanation / Answer

b) $ 5000 favourable is the answer

actual 35000*23=805000

standrad 36000*22.50=810000

direct labor time variance=805000-810000= $5000 favourable

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