Homework Sourse30 Use the following data to find the direct labor efficienc
30. Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period.
Multiple Choice
$5,060 unfavorable.
$5,600 unfavorable.
$5,600 favorable.
$9,450 favorable.
$5,060 favorable.
| Direct labor standard (4 hrs. @ $7.00/hr.) | $ | 28.00 | per unit |
| Actual hours worked | 12,650 | ||
| Actual rate per hour | $ | 7.40 | |
Solution
D. $9,450 favorable
Total direct labor efficiency variance = (AH * SR) - (SH * SR)
= (12,650 * $7.00) - (3,500 * 4 * $7.00)
= $88,550 - $98,000
= $9,450 F
