The management of Chung Fire Alarms has calculated the following variances
Direct materials cost variance $8,000 U
Direct materials efficiency variance 40,000 F
Direct labor cost variance 15,000 F
Direct labor efficiency variance 13,500 U
Total variable overhead variance 8,500 F
Total fixed overhead variance 3,500 F
What is the total direct labor variance of the company?
A) $15,000 F
B) $12,000 F
C) $28,500 F
D) $1,500 F
D .D)
Direct labor cost variance $15,000 F
Direct labor efficiency variance 13,500 U
Total direct labor variance $1,500 F
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