A job was budgeted to require 3 hours of labor per unit at 8

A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000. What is the total labor cost variance? Multiple Choice $2,000 unfavorable $3,000 unfavorable $6,000 unfavorable. $8,000 unfavorable $9,000 unfavorable 3 5 7

Solution

Correct Answer is $6,000 Unfavourable Actual Cost (Given) = $ 1,98,000 Standard cost (8,000 units X 3hours/unit) X $8/hour = $ 1,92,000 $       6,000 Unfavorable