Question

The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 2800 units, the actual direct labor cost was $83200 for 5200 direct labor hours worked, the total direct labor variance is $2800 unfavorable. $800 favorable. $800 unfavorable. $500 unfavorable.

Answer 1

Answer:

$800 favorable

Explanation:

Calculation to determine what the total direct labor variance is

Using this formula

Total Direct Labor Variance=(Standard Direct Labor Cost - Actual Direct Labor Cost

Let plug in the formula

Total Direct Labor Variance=[(2800 × 2) × $15]- $83200

Total Direct Labor Variance=$84000 - $83200

Total Direct Labor Variance = $800 favorable

Therefore the total direct labor variance is$800 favorable