Jaxson Corporation has the following data related to direct labor costs for September: actual costs are 10,200 hours at $15.75 per hour and standard costs are 10,800 hours at $15.50 per hour.What is the direct labor time variance?
A) $9,300 favorable
B) $9,300 unfavorable
C) $9,450 favorable
D) $9,450 unfavorable

Question

Jaxson Corporation has the following data related to direct labor costs for September: actual costs are 10,200 hours at $15.75 per hour and standard costs are 10,800 hours at $15.50 per hour.​What is the direct labor time variance?
A) $9,300 favorable
B) $9,300 unfavorable
C) $9,450 favorable
D) $9,450 unfavorable

Quizplus · Accepted Answer

The direct labor time variance is calculated as (Standard Hours - Actual Hours) x Standard Rate. Here, (10,800 - 10,200) x $15.50 = $9,300 favorable.

Jaxson Corporation Has the Following Data Related to Direct Labor