Extreme Builders Constructs Houses

Multiple Choice

Extreme Builders constructs houses. The standard labor rate is $25 per hour and the standard number of hours is 15,000 hours per home. During the year, it constructed 12 homes using 18,000 labor hours per home and a rate of $28 per hour.
-Refer to Figure 10-6. Calculate the Extreme Builders' labor rate variance.

A) $540,000 U
B) $540,000 F
C) $648,000 U
D) $648,000 F