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Reference: 21_05 A Job Was Budgeted to Require Three Hours of Labor

Question 65

Multiple Choice

Reference: 21_05
A job was budgeted to require three hours of labor per unit at $8 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000.
-What is the labor rate variance?


A) $22,000 unfavorable
B) $16,000 unfavorable
C) $6,000 unfavorable
D) $16,000 favorable
E) $22,000 favorable

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