In a recent period 12,250 units were made and there was a favorable labor efficiency variance of $22,500. If 41,000 labor-hours were worked and the standard wage rate was $12 per labor-hour, the standard hours allowed per unit of output is closest to:
A) 3.19
B) 3.35
C) 3.50
D) 6.00

Question

Quizplus · Accepted Answer

Labor efficiency variance = (Standard Hours Allowed - Actual Hours Worked) x Standard Labor Rate

$22,500 = (SH - 41,000/12,250) x $12
$22,500 = (SH - 3.35) x $12
$1,875 = SH - 3.35
SH = 3.50

In a Recent Period 12,250 Units Were Made and There