Benzyne Corporation produced 100 units of Product AA.The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows:
What is the labor efficiency variance for Benzyne Corporation?
A) $810 U
B) $540 F
C) $602 U
D) $500 F

Question

Benzyne Corporation produced 100 units of Product AA.The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows: 
 What is the labor efficiency variance for Benzyne Corporation?
A) $810 U 
B) $540 F 
C) $602 U 
D) $500 F

Quizplus · Accepted Answer

Labor Efficiency Variance = (Actual Hours - Standard Hours) × Standard Rate
Labor Efficiency Variance = (350 - 300) × $10 = $500 F

Benzyne Corporation Produced 100 Units of Product AA