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Berea Company Produces 2,500 Units

Question 145

Multiple Choice

Berea 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 quantity variance.


A) $2,750 favorable
B) $2,750 unfavorable
C) $2,500 favorable
D) $2,500 unfavorable

Correct Answer:

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