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Fantastic Diapers Made 3,000 Batches This Month

Question 11

Multiple Choice

Fantastic Diapers made 3,000 batches this month.According to the plan,each batch needs 45 minutes of direct labor,which is paid $12.50 per hour,including benefits.Payroll records showed that 2,100 labor hours were worked and that 50 cents more per hour was paid.Which is true?


A) The direct labor wage variance is $1,050 favorable
B) The direct labor wage variance is $1,125 unfavorable
C) The direct labor efficiency variance is $1,950 favorable
D) The direct labor efficiency variance is $1,875 unfavorable
E) None of the choices are correct

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