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12 January, 06:34

gMeadowlark has a direct labor standard of 2.1 hours per unit of output. Each employee has a standard wage rate of $22.50 per hour. During July, Meadowlark paid $94,750 to employees for 4,445 hours worked. 2,200 units were produced during July. What is the direct labor efficiency variance?

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  1. 12 January, 07:00
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    The direct labor efficiency variance is $5,262.50.

    Explanation:

    Direct labor rate = (standard rate - actual rate) * actual hours worked

    = ($22.50*4445) - $94750

    = $5,262.50

    Therefore, The direct labor efficiency variance is $5,262.50.
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Home » Business » gMeadowlark has a direct labor standard of 2.1 hours per unit of output. Each employee has a standard wage rate of $22.50 per hour. During July, Meadowlark paid $94,750 to employees for 4,445 hours worked. 2,200 units were produced during July.
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