Question: Refer to Quick Check 7; the labor rate variance is
(a) $625 F or
(b) $625 U.
Quick Check 7: The following information is available for York Company.
Actual direct labor hours per unit . . . . . . . . . . . . . . 2.5 hours
Standard direct labor hours per unit . . . . . . . . . . . . 2.0 hours
Actual production (units) . . . . . . . . . . . . . . . . . . . . . 2,500 units
Budgeted production (units) . . . . . . . . . . . . . . . . . . 3,000 units
Actual rate per hour . . . . . . . . . . . . . . . . . . . . . . . . $3.10
Standard rate per hour . . . . . . . . . . . . . . . . . . . . . . $3.00
The labor efficiency variance is (a) $3,750 U, (b) $3,750 F, or (c) $3,875 U