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Extreme Builders Constructs Houses

Question 3

Multiple Choice

Extreme Builders constructs houses.The standard labor rate is $25 per hour and the standard number of hours is 15,000 hours per home.During the year, it constructed 12 homes using 18,000 labor hours per home and a rate of $28 per hour ​
Calculate the Extreme Builders' labor rate variance.


A) $540,000 U
B) $540,000 F
C) $648,000 U
D) $648,000 F

Correct Answer:

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