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Question 5 The following labor standards have been established for a particular product: Standard labor-hours per unit of out
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Answer #1

Answer : D = $ 13,310 Favorable.

>> Standard hours = 900 * 8 = 7,200.

>> Labor Efficiency variance = ( Standard hours - Actual hours ) * Standard price

>> Labor Efficiency variance = ( 7,200 - 6,100 ) * $ 12.10

>> Labor Efficiency variance = $ 13,310 Favorable.

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