Question

The per-unit standards for direct labor are 1.5 direct labor hours at $15 per hour. If in producing 3600 units, the actual direct labor cost was $74400 for 4800 direct labor hours worked, the total direct labor variance is $3600 unfavorable. $6600 unfavorable. $1800 unfavorable. $6600 favorable.

Answer 1

See below

Step-by-step explanation:

Given the above information, the total direct labor variance is computed as;

Total direct labor variance = Standard cost - Actual cost

Standard cost = 3,600 units × 1.5 × $15 = $81,000

Actual cost = $74,400

Total direct labor variance = $81,000 - $74,400

Total direct labor variance = $6,600 Favourable