Assume that the standard cost to make one finished unit includes two hours of direct labor at $9 per hour. During May, 25,000 direct labor hours were worked, 12,000 units of product were manufactured, and total direct labor cost was $219,000. What is the (approximate) labor efficiency variance for May?
A) $9,000 unfavorable
B) $8,760 unfavorable
C) $8,760 favorable
D) $9,000 favorable
Correct Answer:
Verified
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