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Yugo Company Produces 2,500 Units

Question 81

Multiple Choice

Yugo 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 $52,250 for 4,750 hours worked.Direct labor is measured in labor hours.What is the flexible budget variance for direct labor?


A) $2,250 Favorable
B) $2,250 Unfavorable
C) $7,500 Favorable
D) $7,500 Unfavorable

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