Asked by Annie Mueller on May 07, 2024
Verified
The labor efficiency variance for August is:
A) $2,400 U
B) $2,400 F
C) $2,352 F
D) $2,352 U
Labor Efficiency Variance
The difference between the actual hours worked and the standard hours expected to produce a certain level of output, multiplied by the standard labor rate.
- Learn about the concept and calculation procedure for labor efficiency variance.
Verified Answer
MS
Maria Sola Gratcia BanjarnahorMay 09, 2024
Final Answer :
B
Explanation :
SH = 3,200 units × 0.4 hours per unit = 1,280 hours
Labor efficiency variance = (AH - SH)× SR
= (1,160 hours − 1,280 hours)× $20.00 per hour
= (−120 hours)× $20.00 per hour
= $2,400 F
Labor efficiency variance = (AH - SH)× SR
= (1,160 hours − 1,280 hours)× $20.00 per hour
= (−120 hours)× $20.00 per hour
= $2,400 F
Learning Objectives
- Learn about the concept and calculation procedure for labor efficiency variance.