Accurate Tax Returns budgets two direct labor hours for every tax return that it prepares, at a standard cost of $34 an hour. During the most recent year, 520 returns were completed with the labor cost totaling $18,000. The actual labor cost was $34.62 per hour during that period. The actual number of labor hours was 1,200.
1) What is the direct labor cost variance?
Select one:
A. $40,800 U
B. $320 F
C. $744 U
D. $40,800 F
E. None of the above

Option C is correct ($744 U)

Direct labor cost variance=$744 U

It is unfavorable because actual labor cost is more than the standard cost of labor.

Explanation:

Option C is correct ($744 U)

Given Data:

Standard cost=$34/hour

Actual labor cost= $34.62/hour

Actual number of labor hours=1200 hours

Required:

The direct labor cost variance=?

Solution:

Direct labor cost variance=(Actual labor cost-Standard cost)*Actual number of labor hours.

Direct labor cost variance=(34.62-34)*1200

Direct labor cost variance=$744 U

It is unfavorable because actual cost is more than the standard cost of labor.

answer; possession utility;

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.