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A Product's Standard Cost Card Specifies That a Unit of the Product

Question 35

Multiple Choice

A product's standard cost card specifies that a unit of the product requires 4 direct labor-hours. During September, 3,350 units were made, which was 150 units less than budgeted. The total budgeted direct labor cost for September was $117,600. The direct labor cost incurred during September was $111,850 and 13,450 direct labor-hours were worked.The labor rate variance for the month was:


A) $5,750 Favorable
B) $5,750 Unfavorable
C) $1,130 Favorable
D) $1,130 Unfavorable

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