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28 August, 23:06

Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period. Direct labor standard (4 hrs. @ $7.10/hr.) $28.40 per unitActual hours worked 12,150Actual rate per hour $7.50a. $4,860 unfavorable. b. $5,600 unfavorable. c. $5,600 favorable. d. $13,135 favorable. e. $4,860 favorable.

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  1. 29 August, 00:10
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    Answer: Option (d) is correct.

    Explanation:

    Given that,

    Company produced = 3,500 units

    Direct labor standard (4 hrs. at $7.10/hr) = $28.40 per unit

    Actual hours worked = 12,150

    Actual rate per hour = $7.50

    bud rate = $7.10/hr

    Direct labor efficiency = (Actual Hours - Standard Hours) * bud rate

    = (12,150 - (3,500 * 4)) * 7.1

    = $13135 Favorable
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