The following data relate to direct labor costs for the current period:Standard costs36,000 hours at $22.00Actual costs35,000 hours at $23.00What is the direct labor time variance?
A) $36,000 unfavorable
B) $35,000 unfavorable
C) $23,000 favorable
D) $22,000 favorable

Question

Quizplus · Accepted Answer

The direct labor time variance is calculated as (Standard Hours - Actual Hours) * Standard Rate. Here, it is (36,000 - 35,000) * $22 = 1,000 * $22 = $22,000 favorable, because the actual hours worked are less than the standard hours allowed for the work done.

The Following Data Relate to Direct Labor Costs for the Current