March 29, 2017

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The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows:

Standard Costs
Direct labor 7,500 hours @ $12.00

Actual Costs
Direct labor 7,400 hours @ $11.40

The amount of the direct labor rate variance is:

A.$4,440 unfavorable

B.$4,500 favorable

C.$4,440 favorable

D.$4,500 unfavorable

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