(solution) The following data relate to direct labor costs for March: Rate:

(solution) The following data relate to direct labor costs for March: Rate:

 

The following data relate to direct labor costs for March:

Rate: standard, $12.00; actual, $12.25

Hours: standard, 18,500; actual, 17,955

Units of production: 9,450

Calculate the direct labor time variance.

a. $6,540.00 favorable
b. $6,540.00 unfavorable
c. $2,362.50 favorable
d. $2,362.50 unfavorable