Compute the total direct labor cost variance

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Problem 1: Fletcher Company collected the following data regarding production of one of its products. Compute the total direct labor cost variance.

Direct labor standard (2 hrs. @ $12.75/hr.) $ 25.50 per finished unit
Actual direct labor hours 81,500 hrs.
Actual finished units produced 40,000 units
Actual cost of direct labor $ 1,100,250

Select one:

a. $80,250 unfavorable.
b. $80,250 favorable.
c. $61,125 favorable.
d. $61,125 unfavorable.
e. $19,125 favorable.

Reference no: EM132957500

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