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An increase in the direct labor rate as a result of union negotiations would most...

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Accounting

An increase in the direct labor rate as a result of union negotiations would most likely impact which of the following variances?

a. Direct labor efficiency variance

b. Direct labor rate variance

c. Direct materials quantity variance

d. Sales volume variance

The following data relate to direct labor costs for the month of June:

Actual costs 8,750 hours of labor at $5.75/hour

Standard costs 9,000 hours of labor at $5.50/hour

What is the direct labor rate variance for June?

$2,187.50 unfavorable

$2,250.00 unfavorable

$1,375 favorable

$1,438 favorable

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