The Actual Cost of Direct Labor Per Hour Is $12

Multiple Choice

The actual cost of direct labor per hour is $12.50 and the standard cost of direct labor per hour is $12.00. Two budgeted direct labor hours are allowed per finished good. During the current period, 250 finished goods were produced using 475 direct labor hours. How much is the direct labor price variance?

A) $250.00 favorable
B) $250.00 unfavorable
C) $237.50 favorable
D) $237.50 unfavorable