Figure 10-6

Multiple Choice

Figure 10-6. Extreme Builders constructs houses.The standard labor rate is $25 per hour and the standard number of hours is 15,000 hours per home.During the year,it constructed 12 homes using 18,000 labor hours per home and a rate of $28 per hour.
Refer to Figure 10-6.Calculate the Extreme Builders' labor rate variance.

A) $540,000 U
B) $540,000 F
C) $648,000 U
D) $648,000 F