The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor efficiency variance for the month?

Question

The following labor standards have been established for a particular product:  The following data pertain to operations concerning the product for the last month:  What is the labor efficiency variance for the month?

Quizplus · Accepted Answer

SH = 900 units × 8.3 hours per unit = 7, 470 hours
Labor efficiency variance = (AH - SH)× SR
= (6, 100 hours - 7, 470 hours)× $12.10 per hour
= (-1, 370 hours)× $12.10 per hour
= $16, 577 F

The Following Labor Standards Have Been Established for a Particular