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Connell Manufactures Specialty Electronic Circuitry Through a Unique Photo-Electronic Process

Question 58

Multiple Choice

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:
 Direct labor hours used 2,000 Direct labor cost $12,000 Units of GT40 manufactured 3,000\begin{array} { l r } \text { Direct labor hours used } & 2,000 \\\text { Direct labor cost } & \$ 12,000 \\\text { Units of GT40 manufactured } & 3,000\end{array} 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

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