Columbia Company produces 2,500 units. Each unit was expected to require 2 labor hours at a cost of $10 per hour. Total labor cost was $55,250 for 4,750 hours worked. Direct labor is measured in hours. _ is the direct- labor usage variance.
A) $2,750 favorable
B) $2,500 favorable
C) $2,750 unfavorable
D) $2,500 unfavorable

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The Answer of Columbia Company produces 2,500 units. Each unit was expected to require 2 labor hours at a cost of $10 per hour. Total labor cost was $55,250 for 4,750 hours worked. Direct labor is measured in hours. _ is the direct- labor usage variance.
A) $2,750 favorable
B) $2,500 favorable
C) $2,750 unfavorable
D) $2,500 unfavorable

Columbia Company Produces 2,500 Units