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The Labor Standard for a Product Was Five Hours at a Wage

Question 68

Multiple Choice

The labor standard for a product was five hours at a wage rate of $8 per hour.The firm produced 900 units of the item.Labor costs totaled $35,250 and 4,700 hours of labor were used.An analysis of labor costs would indicate


A) a $750 favorable labor time variance.
B) a $1,600 favorable labor time variance.
C) a $2,350 unfavorable labor rate variance.
D) a $2,350 favorable labor rate variance.

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