James Company Manufactures T-Shirts

Multiple Choice

James Company manufactures t-shirts.During the year, it manufactured 250,000 t-shirts, using 2 hours of direct labor at a rate of $8.50 per hour.The materials and labor standards for manufacturing the t-shirts are:

- It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts.
What is James' labor rate variance?

A) $190,625 F
B) $250,000 F
C) $250,000 U
D) $193,750 U