Use the following data to find the direct labor efficiency v

Use the following data to find the direct labor efficiency variance If the company produced 3,500 units during the perlod. Direct labor standard (4 hrs. $6.95/hr.) Actual hours worked Actual rate per hour $27.80 per unit 12,400 $7.50 O $6,820 unfavorable O $7700 unfavorable. O $7700 favorable O $11,120 favorable O $6.820 favorable

Solution

Option D ($11,120 Favourable) is the answer

Labor efficiency variance = SR x (SH-AH)

=6.95 x [(3500x4) - 12,400]

=$11,120 Favourable

 Use the following data to find the direct labor efficiency variance If the company produced 3,500 units during the perlod. Direct labor standard (4 hrs. $6.95/

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