Question
Can someone please work this out and explain why it is favorable? I am getting the solution, i just dont know how to tell if
Can someone please work this out and explain why it is favorable? I am getting the solution, i just dont know how to tell if it is favorable or unfavorable.
Whitman has a direct labor standard of 2 hours per unit of output. Each employee has a standard wage rate of $22.50 per hour. During July, Whitman paid $94,750 to employees for 4,445 hours worked. 2,350 units were produced during July. What is the direct labor rate variance? A. $11,000.00 favorable B. $5,737.50 favorable C. $5,262.50 favorable D. $10,525.00 unfavorable The answer is C. I know you do (22.5 * 4445) - 94750 = 5262.50 favorable
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