Jasmine Manufacturing produces the glass vases used by florists.Each vase requires 15 minutes of direct labor time for which glass blowers are paid $30 per hour.During November,Jasmine produced 10,000 glass vases which required 2,550 hours of direct labor.Jasmine paid wages to the glass blowers of $74,500 during November.What is Jasmine's direct labor efficiency variance for November?

Question

Quizplus · Accepted Answer

Direct labor efficiency variance is calculated as:

Actual Hours of Labor - Standard Hours of Labor Allowed x Standard Rate per Hour

In this case, the standard hours of labor allowed can be calculated by multiplying the number of vases produced (10,000) by the standard labor time per vase (15 minutes or 0.25 hours):

Standard Hours of Labor Allowed = 10,000 x 0.25 = 2,500 hours

The standard rate per hour is given as $30.

So, the direct labor efficiency variance is:

2,550 - 2,500 x $30 = $1,500 unfavorable

Therefore, the correct answer is D) $1,500 unfavorable.

Jasmine Manufacturing Produces the Glass Vases Used by Florists