CRS Engineering Company uses a standard cost system. The following information pertains to 2017:
$$\begin{array} { l r }
\text { Actual total direct labor costs } & \$ 320,000 \
\text { Total standard labor hours allowed } & 24,000 \mathrm{~ hrs} \
\text { Actual labor rate } & \$ 8 \text { per hour } \
\text { Standard labor rate } & \$ 9 \text { per hour }
\end{array}$$ Calculate CRS's labor efficiency variance.

Question

CRS Engineering Company uses a standard cost system. The following information pertains to 2017:
 $$\begin{array} { l r } 
\text { Actual total direct labor costs } & \$ 320,000 \
\text { Total standard labor hours allowed } & 24,000 \mathrm{~ hrs} \
\text { Actual labor rate } & \$ 8 \text { per hour } \
\text { Standard labor rate } & \$ 9 \text { per hour }
\end{array}$$ Calculate CRS's labor efficiency variance.

Quizplus · Accepted Answer

The Answer of CRS Engineering Company uses a standard cost system. The following information pertains to 2017:
 $$\begin{array} { l r } 
\text { Actual total direct labor costs } & \$ 320,000 \
\text { Total standard labor hours allowed } & 24,000 \mathrm{~ hrs} \
\text { Actual labor rate } & \$ 8 \text { per hour } \
\text { Standard labor rate } & \$ 9 \text { per hour }
\end{array}$$ Calculate CRS's labor efficiency variance.

CRS Engineering Company Uses a Standard Cost System Calculate CRS's Labor Efficiency Variance