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Fantastic Diapers made 3,000 batches this month. According to the plan, each batch needs 45 minutes of direct labor, which is paid $12.50 per hour,
Fantastic Diapers made 3,000 batches this month. According to the plan, each batch needs 45 minutes of direct labor, which is paid $12.50 per hour, including benefits. Payroll records showed that 2,100 labor hours were worked and that 50 cents more per hour was paid. Which is true?
A) The direct labor wage variance is $1,050 favorable
B) The direct labor wage variance is $1,125 unfavorable
C) The direct labor efficiency variance is $1,950 favorable
D) The direct labor efficiency variance is $1,875 unfavorable
E) None of the choices are correct
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