Jurczyk Corporation makes a product that has the following direct labor standards: In December the company's budgeted production was 4, 600 units, but the actual production was 4, 400 units.The company used 1, 330 direct labor-hours to produce this output.The actual direct labor cost was $14, 364. The labor efficiency variance for December is:

Question

Jurczyk Corporation makes a product that has the following direct labor standards:  In December the company's budgeted production was 4, 600 units, but the actual production was 4, 400 units.The company used 1, 330 direct labor-hours to produce this output.The actual direct labor cost was $14, 364. The labor efficiency variance for December is:

Quizplus · Accepted Answer

SH = 4, 400 units × 0.3 hours per unit = 1, 320 hours
Labor efficiency variance = (AH - SH)× SR
= (1, 330 hours - 1, 320 hours)× $11.00 per hour
= (10 hours)× $11.00 per hour
= $110 U

Jurczyk Corporation Makes a Product That Has the Following Direct