Heartwood Company reported a $4,000 favorable direct labor price variance and a $1,500 unfavorable direct labor usage variance. Select the correct statement from the following.
A. The total direct labor variance is $2,500 favorable.
B. It is probable that the supervisor attempted to use more highly skilled (and paid) employees than allowed for by the direct labor standards.
C. It took the employees less time to produce the outputs than expected.
D. The actual direct labor rate must have exceeded the standard direct labor rate.
Answer: A
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