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 November is:
A) $700 F
B) $760 F
C) $760 U
D) $700 U

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 November is:
A) $700 F 
B) $760 F 
C) $760 U 
D) $700 U

Quizplus · Accepted Answer

SH = 1,800 units × 0.4 hours per unit = 720 hours
Labor efficiency variance = (AH - SH) × SR
= (760 hours − 720 hours) × $19.00 per hour
= (40 hours) × $19.00 per hour
= $760 U

The Following Labor Standards Have Been Established for a Particular