Siberling Tire Corporation manufactures automobile tires. Siberling reported the following budgeted (standard)and actual information for last quarter. What is the direct labor efficiency variance for last quarter?

Question

Siberling Tire Corporation manufactures automobile tires. Siberling reported the following budgeted (standard)and actual information for last quarter.  What is the direct labor efficiency variance for last quarter?

Quizplus · Accepted Answer

Direct labor efficiency variance = (Actual hours worked - Standard hours allowed) x Standard labor rate per hour
= (1,500 - 1,200) x $25 = $12,500 unfavorable
Therefore, the best choice is (C) $12,250 unfavorable since it is the closest answer option.

Siberling Tire Corporation Manufactures Automobile Tires