Taccone Corporation makes a product that has the following direct labor standards: In February the company produced 4,100 units using 1,120 direct labor-hours.The actual direct labor rate was $20.40 per hour. The labor efficiency variance for February is:

Question

Taccone Corporation makes a product that has the following direct labor standards:  In February the company produced 4,100 units using 1,120 direct labor-hours.The actual direct labor rate was $20.40 per hour. The labor efficiency variance for February is:

Quizplus · Accepted Answer

SH = 4,100 units × 0.3 hours per unit = 1,230 hours
Labor efficiency variance = (AH - SH)× SR
= (1,120 hours - 1,230 hours)× $20.00 per hour
= (-110 hours)× $20.00 per hour
= $2,200 F

Taccone Corporation Makes a Product That Has the Following Direct