Connell manufactures specialty electronic circuitry through a unique photo-electronic process. One of the primary products, Model GT40, has a standard labor time of 0.5 hour and a standard labor rate of $7.00 per hour. During March, the following activities pertaining to direct labor for GT40 were recorded:
The Labor rate variance and Labor efficiency variance are:
A) Labor rate variance $2,000 U, Labor efficiency variance $3,500 F
B) Labor rate variance $1,000 F, Labor efficiency variance $3,500 F
C) Labor rate variance $2,000 F, Labor efficiency variance $1,000 F
D) Labor rate variance $2,000 F, Labor efficiency variance $3,500 U
Correct Answer:
Verified
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