Wholesome Burger, Incorporated budgeted $25,000$ direct labor hours for producing $100,000$ units. The standard direct labor rate is $$6$ per hour. During March, the company used $30,000$ hours for producing $80,000$ units and paid $$6\mathrm{.}25$ per hour. Calculate the direct labor rate variance.

$$7,500$ unfavorable

$$7,500$ favorable

$$10,000$ unfavorable

$$10,000$ favorable

Knowledge Check $02$

Wholesome Burger, Incorporated budgeted $25,000$ direct labor hours for producing $100,000$ units. The standard direct labor rate is $$6$ per hour. During March, the company used $30,000$ hours for producing $80,000$ units and paid $$6\mathrm{.}25$ per hour. Calculate the direct labor efficiency variance.

$$60,000$ favorable

$$10,000$ favorable

$$60,000$ unfavorable

$$10,000$ unfavorable

Knowledge Check $03$

In its latest production, Vero Corporation calculated a favorable direct labor rate variance of $$4,500$ and an unfavorable direct labor efficiency variance of $$3,750.$ What is the direct labor spending variance?

$$750$ unfavorable

$$8,250$ unfavorable

$$8,250$ favorable

$$750$ favorable