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Question 3 The following data relate to direct labor costs

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Question 3

The following data relate to direct labor costs for the current period

Standard costs
7,500 hours at $11.50

Actual costs
6,000 hours at $12.00

What is the direct labor time variance?

$3,000 favorable

$15,000 unfavorable

$2,400 favorable

$17,250 favorable

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