Examination of the cost accountants records reveals the foll

Examination of the cost accountant\'s records reveals the following information: Actual costs 7,700 hours at $14.00 Standard costs 7,000 hours at $16.00 What is the direct labor efficiency variance? Select one: O a. $11,200 favorable Ob. None of the above O c. $11,200 unfavorable d. $15,400 favorable e. $15,400 unfavorable f. $14,000 unfavorable g. $7,700 unfavorable h. $14,000 favorable i. $7,700 favorable

Solution

Direct Labour Efficiency Variance= ( Standard Hour -Actual Hour)Standard Rate

=(7000-7700)$16=$11200 Unfavourable

(c) is correct answer

Direct Labour Efficiency Variance= ( Standard Hour -Actual Hour)Standard Rate

=(7000-7700)$16=$11200 Unfavourable (c) is correct answer