Michael Corporation manufactures railroad cars,which is its only product.The standards for railroad cars are as follows:

During the month of March,the company produced 1,650 railroad cars.Related production data for the month follows:

What is the direct labor efficiency variance for the month?

Question

Michael Corporation manufactures railroad cars,which is its only product.The standards for railroad cars are as follows:

During the month of March,the company produced 1,650 railroad cars.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
$10,000 U = (50,000 - {1,650 × 30})× $20

Michael Corporation Manufactures Railroad Cars,which Is Its Only Product