Assume the following information appears in the standard cost card for an organization that makes only one product:

	Standard Quantity or Hours		Standard Price or Rate		Standard Cost
Direct materials	5	pounds	$ 11.00	per pound	$ 55.00
Direct labor	2	hours	$ 17.00	per hour	$ 34.00
Variable manufacturing overhead	2	hours	$ 3.00	per hour	$ 6.00

During the most recent period, the following additional information was available:

20,000 pounds of material was purchased at a cost of $10.50 per pound.

All of the material that was purchased was used to produce 3,900 units.

8,000 direct labor-hours were recorded at a total cost of $132,000.

What is the direct labor spending variance?

Garrison 17e Rechecks 2020-09-29

Multiple Choice

$600 F

$600 U

$3,300 F

$3,300 U