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Historic Restoration Company Budgeted 2

Question 69

Multiple Choice

Historic Restoration Company budgeted 2.5 hours of direct labor per unit at $14.75 per hour to produce 600 replica door knobs.The 600 knobs were completed using 1,200 hours of direct labor at $14.00 per hour.What is the direct labor rate variance?


A) $900 favorable
B) $1,125 favorable
C) $900 unfavorable
D) $1,125 unfavorable

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