Question: Given below: Direct Labor Standard wage rate per direct labor hour $10 Actual wage rate per direct labor hour $11 Standard inputs allowed/unit of output
Given below:
Direct Labor
Standard wage rate per direct labor hour $10 Actual wage rate per direct labor hour $11 Standard inputs allowed/unit of output 2 hrs. Actual units of input 38,000 hrs. Actual units of output 20,000 units
The rate variance for direct labor is:
A. $40,000 favorable
B. $40,000 unfavorable
C. $38,000 favorable
D. $38,000 unfavorable
E. $20,000 favorable
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