Figure 10-8

Multiple Choice

Figure 10-8. The Perfect Tool Company (South America Division) produced 80,000 saw blades during the year.It took 1.5 hours of labor per blade at a rate of $8.50 per hour.However,its standard labor rate is $8.00.Its labor efficiency variance was an unfavorable $40,000.
Refer to Figure 10-8.What is Perfect's labor rate variance?

A) $57,500 U
B) $57,500 F
C) $60,000 U
D) $60,000 F