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Kokko Company makes a product that is expected to require 2 hours of labor per unit of product. The standard cost of labor is $6.90.
Kokko Company makes a product that is expected to require 2 hours of labor per unit of product. The standard cost of labor is $6.90. Kokko actually used 2.10 hours of labor per unit of product. The actual cost of labor was $7.15 per hour. Kokko made 1,600 units of product during the period. Based on this information alone, the labor usage variance is:
Multiple Choice
$1,035 favorable.
$1,104 unfavorable.
$239 favorable.
$1,085 favorable.
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