The actual cost of direct labor per hour is $12.50 and the standard cost of direct labor per hour is $12.00. Two standard direct labor hours are allowed per finished good. During the current period, 250 finished goods were produced using 475 direct labor hours. How much is the direct labor efficiency variance?
A) $312.50 unfavorable
B) $300.00 favorable
C) $312.50 favorable
D) $300.00 unfavorable

Question

Quizplus · Accepted Answer

The Answer of The actual cost of direct labor per hour is $12.50 and the standard cost of direct labor per hour is $12.00. Two standard direct labor hours are allowed per finished good. During the current period, 250 finished goods were produced using 475 direct labor hours. How much is the direct labor efficiency variance?
A) $312.50 unfavorable
B) $300.00 favorable
C) $312.50 favorable
D) $300.00 unfavorable

The Actual Cost of Direct Labor Per Hour Is $12