Asked by Karlee Winkhart on Mar 10, 2024
Verified
The labor efficiency variance for October is:
A) $1,400 Favorable
B) $1,900 Unfavorable
C) $3,750 Favorable
D) $4,375 Unfavorable
Labor Efficiency Variance
The difference between the actual labor hours used to produce a good or service and the standard labor hours expected to be used, measuring labor efficiency.
- Understand thoroughly the concept and methodology for calculating labor efficiency variance.
Verified Answer
AL
Alyzza LopezMar 10, 2024
Final Answer :
D
Explanation :
SH = 3,750 units × 1.4 hours per unit = 5,250 hours
Labor efficiency variance = (AH − SH)× SR
= (5,600 hours − 5,250 hours)× $12.50 per hour
= (350 hours)× $12.50 per hour
= $4,375 U
Labor efficiency variance = (AH − SH)× SR
= (5,600 hours − 5,250 hours)× $12.50 per hour
= (350 hours)× $12.50 per hour
= $4,375 U
Learning Objectives
- Understand thoroughly the concept and methodology for calculating labor efficiency variance.