Jurczyk Corporation makes a product that has the following direct labor standards: In December the company's budgeted production was 4,600 units,but the actual production was 4,400 units.The company used 1,330 direct labor-hours to produce this output.The actual direct labor cost was $14,364. The labor efficiency variance for December is:

Question

Jurczyk Corporation makes a product that has the following direct labor standards:  In December the company's budgeted production was 4,600 units,but the actual production was 4,400 units.The company used 1,330 direct labor-hours to produce this output.The actual direct labor cost was $14,364. The labor efficiency variance for December is:

Quizplus · Accepted Answer

SH = 4,400 units × 0.3 hours per unit = 1,320 hours
Labor efficiency variance = (AH - SH)× SR
= (1,330 hours - 1,320 hours)× $11.00 per hour
= (10 hours)× $11.00 per hour
= $110 U

Jurczyk Corporation Makes a Product That Has the Following Direct