Question 31 Blumenthal Manufacturing makes a product with th

Question 31 Blumenthal Manufacturing makes a product with the following standard costs Standard Quantity or Hours Standard Price or Rate $3.00 per pound $19.00 per hour $8.00 per hour Not yet answered Points out of 3 Direct materials Direct labor Variable overhead In July the company produced 3,200 units using 12.240 pounds of the direct material and 1,900 direct labor-hours. During the month, the company purchased 13,000 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $51,612 and the actual variable overhead cost was $20,148. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for July is: 3.5 pounds 0.8 hours 0.8 hours Flag question Select one O a. $36,100.00 O b. $-12,540.00 O c. $-24,700.00 O d. $60,800.00 0

Solution

Labor efficiency variance = 19*(1900-3200*0.8)= $-12540 Option B is correct