The following labour standards have been established for a particular product: $\begin{array}{lccc}
\text {Standard labour hours per unit of output }&\text {8.3 metres}\
\text {Standard labour rate}&\text {\$ 12.10 per metre}\
\end{array}$
The following data pertain to operations concerning the product for the last month: $\begin{array} { l r }
\text { Actual hours worked } & 6,100 \text { hours } \
\text { Actual total labour cost } & \$ 71,370 \
\text { Actual output } & 900 \text { units }
\end{array}$ What was the labour efficiency variance for the month?
A) $16,029 favourable.
B) $16,577 favourable.
C) $19,017 favourable.
D) $19,017 unfavourable.

Question

The following labour standards have been established for a particular product: $\begin{array}{lccc}
\text {Standard labour hours per unit of output }&\text {8.3 metres}\
\text {Standard labour rate}&\text {\$ 12.10 per metre}\
\end{array}$
 The following data pertain to operations concerning the product for the last month: $\begin{array} { l r } 
\text { Actual hours worked } & 6,100 \text { hours } \
\text { Actual total labour cost } & \$ 71,370 \
\text { Actual output } & 900 \text { units }
\end{array}$ What was the labour efficiency variance for the month?
A) $16,029 favourable.
B) $16,577 favourable.
C) $19,017 favourable.
D) $19,017 unfavourable.

Quizplus · Accepted Answer

The Answer of The following labour standards have been established for a particular product: $\begin{array}{lccc}
\text {Standard labour hours per unit of output }&\text {8.3 metres}\
\text {Standard labour rate}&\text {\$ 12.10 per metre}\
\end{array}$
 The following data pertain to operations concerning the product for the last month: $\begin{array} { l r } 
\text { Actual hours worked } & 6,100 \text { hours } \
\text { Actual total labour cost } & \$ 71,370 \
\text { Actual output } & 900 \text { units }
\end{array}$ What was the labour efficiency variance for the month?
A) $16,029 favourable.
B) $16,577 favourable.
C) $19,017 favourable.
D) $19,017 unfavourable.

The Following Labour Standards Have Been Established for a Particular