The following labor standards have been established for a particular product:
The following data pertain to operations concerning the product for the last month:
What is the labor efficiency variance for the month?
A) $9,790 F
B) $11,095 U
C) $9,955 F
D) $11,095 F

Question

The following labor standards have been established for a particular product:
 The following data pertain to operations concerning the product for the last month:
 What is the labor efficiency variance for the month?
A) $9,790 F 
B) $11,095 U 
C) $9,955 F 
D) $11,095 F

Quizplus · Accepted Answer

SH = 500 units × 8.7 hours per unit = 4,350 hours
Labor efficiency variance = (AH - SH) × SR
= (3,800 hours - 4,350 hours) × $18.10 per hour
= (-550 hours) × $18.10 per hour
= $9,955 F

The Following Labor Standards Have Been Established for a Particular