Ten Minutes of Direct Labour Is Needed to Produce One

Multiple Choice

Ten minutes of direct labour is needed to produce one unit of product and direct labour is paid $24 per hour. Budgeted output for the period is estimated to be 8000 units. Actual output for the period turns out to be 8500 units and actual labour costs are $36 200 What budgeted direct labour amount should actual direct labour costs be compared to in order to calculate a valid variance?

A) $32 000
B) $19 200
C) $20 400
D) $34 000