Elk Creek Company's most popular product requires specialized labor. These individuals are highly productive, but also highly paid. The following standards have been developed for the product:
3 direct labor hours/unit
$45/direct labor hour
During November, Elk Creek produced 3,600 units and used 7,000 direct labor hours. The company's direct labor cost was $378,000. What is the difference between the actual amiunt paid and the amont that should have been paid fir the number of hours worked, and is it favorable or unfavorable?
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