The following data relate to direct labor costs for the current period:
A)$1,875.00 unfavorable
B)$2,212.50 unfavorable
C)$1,875.00 favorable
D)$2,212.50 favorable

Question

Quizplus · Accepted Answer

The term "favorable" means that the actual direct labor costs are less than the budgeted or standard costs. Therefore, option C, which indicates $1,875.00 favorable, is the most appropriate choice. The opposite of favorable is unfavorable, meaning actual costs exceeded the budgeted or standard cost. Therefore, options A and B are not appropriate. Option D, which states $2,212.50 favorable, is incorrect because the answer cannot be both favorable and unfavorable.

The Following Data Relate to Direct Labor Costs for the Current