What is MajorNets direct labor cost variance for August? a. $67.20 U b. $151.20 U c. $201.60

Question:

What is MajorNet’s direct labor cost variance for August?

a. $67.20 U

b. $151.20 U

c. $201.60 U

d. $919.80 U

MajorNet Systems has budgeted three hours of direct labor per connector, at a standard cost of $17 per hour. During August, technicians actually worked 189 hours completing 84 connectors. All 84 connectors actually produced were sold. MajorNet paid the technicians $17.80 per hour.

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