Mason Ltd uses a standard costing system. Overhead costs are allocated based on direct labor hours. The standard variable overhead and fixed overhead rates are $1 and $5 per direct labor hour, respectively. Data relevant for the current period include: The direct labor price variance is
A) $30,000 Favorable
B) $30,000 Unfavorable
C) $75,000 Unfavorable
D) $78,000 Unfavorable

Question

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The Answer of Mason Ltd uses a standard costing system. Overhead costs are allocated based on direct labor hours. The standard variable overhead and fixed overhead rates are $1 and $5 per direct labor hour, respectively. Data relevant for the current period include: The direct labor price variance is
A) $30,000 Favorable
B) $30,000 Unfavorable
C) $75,000 Unfavorable
D) $78,000 Unfavorable

Mason Ltd Uses a Standard Costing System