The following data relate to direct labor costs for March:
Rate: standard, $12.00; actual, $12.25
Hours: standard, 18,500; actual, 17,955
Units of production: 9,450
-The direct labor time variance is
A)$2,362.50 favorable
B)$2,362.50 unfavorable
C)$6,540.00 favorable
D)$6,540.00 unfavorable

Question

Quizplus · Accepted Answer

The direct labor time variance is calculated as (Standard Hours - Actual Hours) x Standard Rate. Here, (18,500 - 17,955) x $12.00 = $6,540.00 favorable.

The Following Data Relate to Direct Labor Costs for March