Use the following data to find the total direct labor cost variance:


Use the following data to find the total direct labor cost variance:

Direct labor standard (4 hrs.@ $ 7/hr.) $28per unit
Actual hours worked per unit 3.5 hours
Actual units produced 4,500 units
Actual rate per hour 7.25

_______________________
$11,813 unfavorable.
$18,000 unfavorable.
$18,000 favorable.
$13,500 favorable.
$11,813 favorable.

_______________
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Best answer
M V N D BHAVANI
M V N D BHAVANI answered this 14 minutes later
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230 answers • 66% Best Answer
Total Direct Labour Cost = Standard Cost at Standard Number of Hours-Actual Cost at Actual Number of Hours
Total Direct Labour Cost = (4,500\times 4\times 7)-(4,500\times 3.5\times 7.25)
Total Direct Labour Cost = 126,000-114,187.5
Total Direct Labour Cost = 11,812.5
Therefore the total direct labour cost when rounded off would be $11,813(F), thus correct option is 5.
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