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The Standard Direct Labor Cost for Producing One Unit of Product

Question 198

Multiple Choice

The standard direct labor cost for producing one unit of product is 5 direct labor hours at a standard rate of pay of $20. Last month 15000 units were produced and 73500 direct labor hours were actually worked at a total cost of $1350000. The direct labor quantity variance was


A) $30000 unfavorable.
B) $45000 unfavorable.
C) $45000 favorable.
D) $30000 favorable.

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