Machine Builders Inc.adopted a standard cost system several years ago that it uses in conjunction with its process cost system.The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: 4 kilograms/unit x $10.00 per kilogram = $40.00/unit;labor: (4 hours x $18.00 per hour)$72.00/unit.All materials are issued at the beginning of processing.The operating data shown below were taken from the records for July:
The direct labor efficiency variance for July was:
A)$6,600 favorable.
B)$7,200 unfavorable.
C)$8,000 unfavorable.
D)$14,400 favorable.
E)$79,200 favorable.

Question

Machine Builders Inc.adopted a standard cost system several years ago that it uses in conjunction with its process cost system.The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: 4 kilograms/unit x $10.00 per kilogram = $40.00/unit;labor: (4 hours x $18.00 per hour)$72.00/unit.All materials are issued at the beginning of processing.The operating data shown below were taken from the records for July: 
The direct labor efficiency variance for July was:
A)$6,600 favorable. 
B)$7,200 unfavorable. 
C)$8,000 unfavorable. 
D)$14,400 favorable. 
E)$79,200 favorable.

Quizplus · Accepted Answer

The Answer of Machine Builders Inc.adopted a standard cost system several years ago that it uses in conjunction with its process cost system.The per-unit standard costs for direct materials and direct labor for its single product are as follows: Materials: 4 kilograms/unit x $10.00 per kilogram = $40.00/unit;labor: (4 hours x $18.00 per hour)$72.00/unit.All materials are issued at the beginning of processing.The operating data shown below were taken from the records for July: 
The direct labor efficiency variance for July was:
A)$6,600 favorable. 
B)$7,200 unfavorable. 
C)$8,000 unfavorable. 
D)$14,400 favorable. 
E)$79,200 favorable.