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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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