Answer (C) is correct . The total variance for labor consists of a price (rate) variance and an efficiency (usage) variance. Since the total variance is $15,000 favorable, the price variance must be $33,000 unfavorable (–$18,000 + $33,000 = $15,000).
Answer (A) is incorrect because Improperly reversing the sign of the efficiency variance results in $3,000 favorable.
Answer (B) is incorrect because Improperly netting the total labor variance and the labor efficiency variance results in $3,000 favorable.
Answer (D) is incorrect because Reversing the sign of the total labor variance results in $33,000 unfavorable.
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