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Information on Kimble Company's Direct Labor Costs for the Month

Question 119

Multiple Choice

Information on Kimble Company's direct labor costs for the month of January is as follows:
 Actual direct labor hours 34,500 Standard direct labor hours 35,000 Total direct labor payroll $241,500 Direct labor efficiency variarice-favorable $3,200\begin{array} { l r r } \text { Actual direct labor hours } & 34,500 \\\text { Standard direct labor hours } & 35,000 \\\text { Total direct labor payroll } & \$ 241,500 \\\text { Direct labor efficiency variarice-favorable } & \$ 3,200\end{array}
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Is the direct labor rate variance favorable or unfavorable?


A) Favorable
B) Unfavorable

Correct Answer:

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