Answer (B) is correct . The direct labor price variance equals actual labor hours times the difference between standard and actual labor rates. The actual direct labor cost was $940,000 for 94,000 hours, or $10 per hour. The standard rate was $9 per hour. Thus, the variance is $94,000 unfavorable [94,000 hours × ($9 – $10)].
Answer (A) is incorrect because The direct labor efficiency variance is $54,000 unfavorable.
Answer (C) is incorrect because The actual rate times the difference between capacity and actual hours equals $60,000 favorable.
Answer (D) is incorrect because The total direct labor variance is $148,000 unfavorable.
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Water Control’s direct labor price variance for November was
