The following labor standards have been established for a particular product:
The following data pertain to operations concerning the product for the last month:

-The labor efficiency variance for the month was:
A) $420.00 U
B) $420.00 F
C) $415.80 U
D) $415.80 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:
 
-The labor efficiency variance for the month was:
A) $420.00 U 
B) $420.00 F 
C) $415.80 U 
D) $415.80 F

Quizplus · Accepted Answer

SR = $117,600 ÷ [(3,350 units + 150 units) × 4 hours per unit]
SR = $117,600 ÷ [(3,500 units) × 4 hours per unit]
SR = $117,600 ÷ [14,000 hours]
SR = $8.40 per hour
SH = 3,350 units × 4.00 hours per unit = 13,400 hours
Labor efficiency variance = (AH − SH) × SR
= (13,450 hours − 13,400 hours) × $8.40 per hour
= (50 hours) × $8.40 per hour
= $420 U

The Following Labor Standards Have Been Established for a Particular