Answer:
A. The direct labor hours expected for the actual output during the month were more than actual direct labor hours logged during the month
Explanation:
The direct labor hours estimated we 4 labor hours per unit. To calculate actual labor hours worked we multiply total units by 4 labor hours
1000 units * 4labor hour / unit = 4,000 labor hours
but actually labor hours we 3,750 hours
3750 hours / 4 hour /unit = 937.5 units
The labor is efficient as it consumed less hours and produce more units than expected.
The labor rate paid per hour was higher than expected
4 labor hours per unit * $9.15 / labor hour = $36.6 per unit
In total the cost of labor was lower than expected
$9.15 per hour * 3,750 hours = $34,312