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Frames Incorporated Budgeted Two Hours of Direct Labor Per Unit

Question 15

Multiple Choice

Frames Incorporated budgeted two hours of direct labor per unit at $10.75 per hour to produce 600 units of product. The 600 units were completed using 1800 hours of direct labor at $13.00 per hour. What is the direct labor efficiency variance?


A) $6450 unfavorable
B) $6450 favorable
C) $7800 unfavorable
D) $7800 favorable

Correct Answer:

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