The following labor standards have been established for a particular product: Standard labor-hours per unit of...
The following labor standards have been established for a particular product:
| Standard labor-hours per unit of output | 8.7 | hours | |
| Standard labor rate | $ | 18.10 | per hour |
The following data pertain to operations concerning the product for the last month:
| Actual hours worked | 3,800 | hours | |
| Actual total labor cost | $ | 67,640 | |
| Actual output | 500 | units | |
What is the labor efficiency variance for the month?
Multiple Choice
-
$9,790 F
-
$11,095 F
-
$9,955 F
-
$11,095 U
Homework Answers
Labor efficiency variance = (Standard hours - Actual hours) * standard rate
= (8.7*500 - 3800) * 18.10
= 9955 F
Option C is the answer
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