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 = 1, 200 units × 7.5 hours per unit = 9, 000 hours
Labor efficiency variance = (AH - SH)× SR
= (9, 600 hours - 9, 000 hours)× $15.25 per hour
= (600 hours)× $15.25 per hour
= $9, 150 U

The Following Labor Standards Have Been Established for a Particular