Beachwood Company Produces 2,500 Units

Multiple Choice

Beachwood 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) $7,750 favorable
C) $7,750 unfavorable
D) $5,250 unfavorable