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Frames Incorporated Budgeted One and One Half Hours of Direct

Question 35

Multiple Choice

Frames Incorporated budgeted one and one half hours of direct labor per unit at $10.75 per hour to produce 550 units of product. The 550 units were completed using 1650 hours of direct labor at $11.25 per hour. What is the direct labor rate variance?


A) $275 favorable
B) $825 favorable
C) $275 unfavorable
D) $825 unfavorable

Correct Answer:

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