The following data relate to direct labor costs for the current period: Standard costs
36,000 hours at $22.00
Actual costs
35,000 hours at $23.00
The direct labor time variance is
A)$36,000 unfavorable
B)$35,000 unfavorable
C)$23,000 favorable
D)$22,000 favorable

Question

Quizplus · Accepted Answer

The direct labor time variance is calculated as (Standard Hours - Actual Hours) * Standard Rate. Here, it is (36,000 - 35,000) * $22 = 1,000 * $22 = $22,000 favorable, because actual hours worked were less than the standard hours allowed.

The Following Data Relate to Direct Labor Costs for the Current