Planned: Production 22,000 units Standards 100 lbs. @ $2.50/lb. = $250/unit Direct Labor 2 hrs/unit * $10/hour = $20/unit Variable Overhead $2.

Planned:

Production 22,000 units

Standards 100 lbs. @ $2.50/lb. = $250/unit

Direct Labor 2 hrs/unit * $10/hour = $20/unit

Variable Overhead $2.50/direct labor hour = $5/unit

Fixed Overhead $698,500

Actual:

Production 24,000 units

Material used 2,640,000 lbs @ $2.40/lb

Direct Labor 49,000 hours total $465,500

Variable Overhead $128,000

Fixed Overhead $750,000

What is the Labor Price Variance?

a.$24,500 U

b.$24,500 F

c.$ 5,000 U

d.$ 5,000 F