It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts.
-Refer to Figure 10-9. What is James' labor efficiency variance?
A) $800,000 U
B) $850,000 F
C) $800,000 F
D) $850,000 U

Question

It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts.
-Refer to Figure 10-9. What is James' labor efficiency variance?
A) $800,000 U 
B) $850,000 F 
C) $800,000 F 
D) $850,000 U

Quizplus · Accepted Answer

To calculate the labor efficiency variance, we need to find out the difference between the actual labor hours used and the standard labor hours allowed for the actual output, multiplied by the standard labor rate per hour. However, the problem only provides information on the total cost of materials used, not the number of labor hours used or the standard labor hours allowed for that output. Therefore, it is impossible to calculate the labor efficiency variance with the given information. The correct answer is C, as none of the options accurately reflect the labor efficiency variance.

It Took James 1,400,000 Yards at $2