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Fantastic Diapers Made 3,000 Batches This Month

Question 14

Multiple Choice

Fantastic Diapers made 3,000 batches this month. According to the plan, each batch needs 45 minutes of direct labor, which is paid $12.50 per hour, including benefits. Payroll records showed that 2,100 labor hours were worked and that 50 cents more per hour was paid. Which is true?


A) The direct labor rate variance is $1,050 fav
B) The direct labor rate variance is $1,125 unfav
C) The direct labor efficiency variance is $1,875 fav
D) The direct labor efficiency variance is $1,875 unfav
E) None of the above

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