Custom Tile Works budgeted 2.5 hours of direct labour per unit at $12.20 per hour to produce 520 hand-painted mosaic tiles. The 520 tiles were completed using 1,400 hours of direct labour at $12.50 per hour. What is the direct labour price variance?
A) $390 favourable
B) $420 favourable
C) $420 unfavourable
D) $390 unfavourable
Correct Answer:
Verified
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