The actual cost of direct labor per hour is $15.20 and the standard cost of direct labor per hour is $14.00.One and a half standard direct labor hours are allowed per finished unit.During the current period,500 finished goods were produced using 2,050 direct labor hours.How much is the direct labor efficiency variance?

Question

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Explanation:Direct labor efficiency variance = (Standard rate per hour - Actual rate per hour) * Actual hours worked= ($14.00 - $15.20) * 2,050 hours= -$2.20 * 2,050 hours= -$4,510 unfavorable

The Actual Cost of Direct Labor Per Hour Is $15