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andreev551 [17]
2 years ago
12

The fixed budget indicates direct labor costs of $27,500. Actual direct labor costs were $27,000. The variance is:

Business
1 answer:
Vedmedyk [2.9K]2 years ago
5 0

Based on the information given the variance is $500 favorable.

<h3>
Variance</h3>

Using this formula

Variance=Fixed Direct labor cost-Actual direct labor cost

Where:

Fixed Direct labor cost=$27,500

Actual direct labor cost=$27,000

Let plug in the formula

Variance=$27,500-$27,000

Variance=$500 favorable

Inconclusion  the variance is $500 favorable.

Learn more about variance here:brainly.com/question/25639778

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