Question

The per-unit standards for direct labour are 3 direct labour hours at $15 per hour. If...

The per-unit standards for direct labour are 3 direct labour hours at $15 per hour. If in producing 710 units, the actual direct labour cost was $31000 for 2377 direct labour hours worked, the total direct labour variance is

$247 unfavourable.

$950 favourable.

$247 favourable.

$950 unfavourable.

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Answer #1

Total labor variance

= Standard labor cost - Actual labor cost

= (3*15*710) - 31,000

= 31,950 - 31,000

= 950 Favourable

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