Madden Corporation manufactures t-shirts,which is its only product.The standards for t-shirts are as follows:

During the month of January,the company produced 1,250 t-shirts.Related production data for the month follows:

What is the direct labor efficiency variance for the month?

Question

Madden Corporation manufactures t-shirts,which is its only product.The standards for t-shirts are as follows:

During the month of January,the company produced 1,250 t-shirts.Related production data for the month follows:

What is the direct labor efficiency variance for the month?

Quizplus · Accepted Answer

D)
Labor efficiency variance = (Actual hours - Standard hours for actual units)× Standard rate
$340 U = (770 - {1,250 × 0.6})× $17

Madden Corporation Manufactures T-Shirts,which Is Its Only Product