Explore BrainMass

direct labor variances

The direct labor standards for a particular product are:

4 hours of direct labor @ $12.00 per direct labor-hour = $48.00
During October, 3,350 units of this product were made, which was 150 units less than budgeted. The labor cost incurred was $159,786 and 13,450 direct labor-hours were worked. The direct labor variances for the month were:

Labor Rate Variance Labor Efficiency Variance
A) $1,614 U $600 U
B) $1,614 U $600 F
C) $1,614 F $600 U
D) $1,614 F $ 600 F

A) A above
B) B above
C) C above
D) D above