Claire Company uses a standard costing system.The following information pertains to direct labor costs for February:

-
What is the total labor budget variance for Claire Company?

A) $18,000 F
B) $12,000 F
C) $18,000 U
D) $12,000 U

Question

Claire Company uses a standard costing system.The following information pertains to direct labor costs for February:

-
What is the total labor budget variance for Claire Company?

A) $18,000 F 
B) $12,000 F 
C) $18,000 U 
D) $12,000 U

Quizplus · Accepted Answer

$18,000 / ($15.00- $13.50) = 12,000 actual hours
(12,000 × $13.50) -(10,000 × $15) = $12,000 U

Claire Company Uses a Standard Costing System