Choco Sweet Inc gives you the following information: The standard labor time of 0.75 labor hour is required to produce one unit. The standard labor cost for a 10 pound bag of chocolate is $8 per labor hour. The following is data relating to the actual cost and usage data. Direct labor hours used 5,000 hours Total cost of direct labor $42,500 Number of good units produced 8,500 units Using the
above information provided for Choco Sweet, compute the direct labor rate variance for Choco Sweet Inc
A) $8,500 (F)
B) $11,688 (U)
C) $6,000 (F)
D) $2,500 (U)
D
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