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Question 45

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Tennis Pro's standard assembly time per tennis racket is 0.40 hours at a standard cost of $10 per labor hour. During January 2010, Tennis Pro produced 5,000 tennis rackets in 2,300 labor hours at a cost of $9.50 per labor hour. Tennis Pro had budgeted to produce 4,800 tennis rackets in January 2010.
-What is Tennis Pro's labor efficiency variance?


A) $3,800 unfavorable
B) $2,850 unfavorable
C) $2,850 favorable
D) $3,000 favorable
E) $3,000 unfavorable

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