Crichton Company The following information is for Crichton Company's July production:
(Round all answers to the nearest dollar.)
Refer to Crichton Company. What is the labor efficiency variance?
A) $1,875 U
B) $938 U
C) $1,875 F
D) $1,125 U

Question

Crichton Company The following information is for Crichton Company's July production:
 (Round all answers to the nearest dollar.)
Refer to Crichton Company. What is the labor efficiency variance?
A) $1,875 U 
B) $938 U 
C) $1,875 F 
D) $1,125 U

Quizplus · Accepted Answer

The labor efficiency variance is calculated as follows:
Actual Hours - Standard Hours Allowed x Standard Rate per Hour
= (3,900 - 3,600) x $0.50
= $150 U
Therefore, the correct answer is B) $938 U, as the labor efficiency variance is unfavorable (U).

Crichton Company the Following Information Is for Crichton Company's July