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Bonner Company's Direct Labor Cost for March Was as Follows

Question 47

Multiple Choice

Bonner Company's direct labor cost for March was as follows:
 Actual direct labor hours30,000 Standard direct labor hours 31,000 Rate variance$4,500UTotal payroll $189,000 Labor mix variance $4,225U\begin{array}{lrr} \text { Actual direct labor hours} &30,000\\ \text { Standard direct labor hours } &31,000\\ \text { Rate variance} &\$4,500 \mathrm{U}\\ \text {Total payroll } &\$189,000\\ \text { Labor mix variance } &\$4,225 \mathrm{U}\\\end{array}


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Is the direct labor yield variance favorable or unfavorable?


A) Favorable.
B) Unfavorable.

Correct Answer:

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