The following data is given for the Harry Company: Overhead is applied on standard labor hours.
The direct labor time variance is:
A) 6,000F
B) 6,000U
C) 33,000U
D) 33,000F

Question

The following data is given for the Harry Company:  Overhead is applied on standard labor hours.
The direct labor time variance is:
A) 6,000F 
B) 6,000U 
C) 33,000U 
D) 33,000F

Quizplus · Accepted Answer

The formula for Direct Labor Time Variance is (Actual Hours - Standard Hours) x Standard Rate.

Given: 
- Overhead is applied on standard labor hours 
- No information is given about the actual labor rate, so we cannot calculate the Direct Labor Rate Variance

To calculate the Direct Labor Time Variance, we need to know the actual and standard hours worked. However, the given data only includes the overhead rate and no information about the actual hours worked.

Therefore, there is not enough information to calculate the Direct Labor Time Variance. The answer is "not determinable" or "not enough information given."

The Following Data Is Given for the Harry Company