Big Sky Enterprises produces frozen French fries. This past month, Big Sky made 63,000 bags of fries. Big Sky's standard hours to make each bag of fries is 0.1 hours and its standard labor rate is $13.50 per hour. It took Big Sky 6,500 hours to make these bags of fries at a labor cost of $89,375. What was their Labor Spending Variance, and is it favorable or unfavorable? 

$2,700 Unfavorable 

$3,725 Favorable 

$1,625 Unfavorable 

$4,625 Unfavorable

Answer rating: 100% (QA)

The Labor Spending Variance can be calculated using the formula Labor Spending Variance Actua... View the full answer