Accurate Tax Returns Budgets 2 Direct Labor Hours for Every

Multiple Choice

Accurate Tax Returns budgets 2 direct labor hours for every tax return that it prepares, at a standard cost of $32 an hour. During the most recent year, 500 returns were completed with the labor cost totaling $18,000. The actual labor cost was $36 per hour during that period. The actual number of labor hours was 1,000. What was the direct labor cost variance?

A) $2,000 F
B) $32,000 U
C) $4,000 U
D) $32,000 F