Midgley Corporation Makes a Product Whose Direct Labor Standards Are

Multiple Choice

Midgley Corporation makes a product whose direct labor standards are 0.8 hours per unit and $22.00 per hour. In April the company produced 6,900 units using 5,250 direct labor-hours. The actual direct labor cost was $113,925. The labor rate variance for April is:

A) $1,575 U
B) $1,656 F
C) $1,575 F
D) $1,656 U