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Ultimate U-Bolts (UU) Paid $161,175 for Direct Labor This Month

Question 15

Multiple Choice

Ultimate U-bolts (UU) paid $161,175 for direct labor this month, paying $1.50 cents less per hour than planned. Fifty-four thousand pounds of bolts were produced and direct labor was paid for 9,210 hours. Producing one pound takes ten minutes. Which is true?


A) The direct labor rate variance is $4,605 unfav
B) The direct labor rate variance is $4,605 fav
C) The direct labor rate variance is $4,500 fav
D) The labor operating efficiency is 102%
E) None of the above

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