Adler Industries uses a standard cost system.Adler has established the following standards for one unit of product: standard labor of 0.25 hour and standard wage rate of $12 per hour.During January, Adler used 5,000 hours of direct labor and paid $62,500 in wages in producing 18,700 units.
Required:
Calculate the direct labor efficiency variance and indicate whether the variance is favorable or unfavorable.

Question

Quizplus · Accepted Answer

The Answer of Adler Industries uses a standard cost system.Adler has established the following standards for one unit of product: standard labor of 0.25 hour and standard wage rate of $12 per hour.During January, Adler used 5,000 hours of direct labor and paid $62,500 in wages in producing 18,700 units.
Required:
Calculate the direct labor efficiency variance and indicate whether the variance is favorable or unfavorable.

Adler Industries Uses a Standard Cost System