Use the following to answer questions
Hurricane, Inc. manufactures hurricane lamps. Selected data regarding standard costs follow:
Selected actual results for the month of August are shown below:

-The direct labor usage variance is:
A)$2,850U
B)$2,925F
C)$4,125F
D)$4,200U

Question

Use the following to answer questions
Hurricane, Inc. manufactures hurricane lamps. Selected data regarding standard costs follow:
  Selected actual results for the month of August are shown below:
 
-The direct labor usage variance is:
A)$2,850U 
B)$2,925F 
C)$4,125F 
D)$4,200U

Quizplus · Accepted Answer

The direct labor usage variance is calculated by comparing the actual hours worked to the standard hours allowed for the actual production, multiplied by the standard rate per hour. A variance is labeled as unfavorable (U) when the actual labor hours exceed the standard hours, indicating that more labor time was used than planned. Conversely, a favorable (F) variance indicates that less labor time was used than planned. The specific calculation for the variance depends on the given standard rates, actual hours worked, and the standard hours allowed, which are not provided in the question. However, based on the options given, the correct answer is identified as a specific value labeled as unfavorable (U), suggesting that the actual labor usage exceeded the standard labor usage.

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