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 1200. What is the direct labor cost variance?
A) $320 F
B) $40,800 U
C) $744 U
D) $40,800 F
C) $744 U
Explanation: Direct labor cost variance = (Actual cost - Standard cost) × Actual quantity
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