The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month:
What is the labor efficiency variance for the month?

Question

The following labor standards have been established for a particular product:  The following data pertain to operations concerning the product for the last month:
 What is the labor efficiency variance for the month?

Quizplus · Accepted Answer

SH = 500 units × 8.7 hours per unit = 4,350 hours
Labor efficiency variance = (AH - SH) × SR
= (3,800 hours - 4,350 hours) × $18.10 per hour
= (-550 hours) × $18.10 per hour
= $9,955 F

The Following Labor Standards Have Been Established for a Particular