Denise Corporation's standard wage rate is $14.40 per direct labor-hour (DLH)and according to the standards,each unit of output requires 7.0 DLHs.In May,5,200 units were produced,the actual wage rate was $13.70 per DLH,and the actual hours were 36,520 DLHs.The Labor Efficiency Variance for May would be recorded as a:
A)credit of $1,644.
B)credit of $1,728.
C)debit of $1,728.
D)debit of $1,644.

Question

Quizplus · Accepted Answer

SH = 5,200 units F1F1F1S1F1F1F10 7 hours per unit = 36,400 hours
Labor efficiency variance = (AH - SH)SR
= (36,520 hours - 36,400 hours)$14.40 per hour
= (120 hours)$14.40 per hour = $1,728 U

Denise Corporation's Standard Wage Rate Is $14