The following data relate to direct labor costs for the current period:
Standard costs 6,000 hours at $12.00
Actual costs 7,500 hours at $11.60
What is the direct labor rate variance?
Answer
A.$15,000 unfavorable
B.$3,000 favorable
C.$17,400 unfavorable
D.$2,400 favorable Accounting
(AR-SR)AH
(11.6-12)(7500)
= $ 3,000 favorable