Jasmine Manufacturing produces the glass vases used by florists.Each vase requires 15 minutes of direct labor time for which glass blowers are budgeted $30 per hour.During November, Jasmine produced 10,000 glass vases which required 2,550 hours of direct labor.Jasmine paid wages to the glass blowers of $74,500 during November.What is Jasmine's direct labor efficiency variance for November?
A)$2,000 unfavorable
B)$2,000 favorable
C)$1,500 favorable
D)$1,500 unfavorable

Question

Quizplus · Accepted Answer

Direct labor efficiency variance = (standard hours - actual hours) x standard rate

The standard hours for 10,000 vases would be 10,000 x 15 minutes = 150,000 minutes, or 2,500 hours (since there are 60 minutes in an hour).

The actual hours used during November were 2,550, so the variance would be:

(2,500 - 2,550) x $30 = $1,500 unfavorable.

Therefore, the correct answer is D) $1,500 unfavorable.

Jasmine Manufacturing Produces the Glass Vases Used by Florists