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Strongsville Company Produces 2,500 Units

Question 127

Multiple Choice

Strongsville Company produces 2,500 units.Each unit was expected to require 2 labor hours at a cost of $10 per hour.Total labor cost was $55,250 for 4,750 hours worked.Direct labor is measured in hours._____ is the direct-labor price variance.


A) $5,250 favorable
B) $5,250 unfavorable
C) $7,750 favorable
D) $7,750 unfavorable

Correct Answer:

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