Jenkins Manufacturing
The following information is available for Jenkins Manufacturing Company for the month of June when the company produced 2,100 units:
Staudard:
Material 2 pounds per unit @$5.80 per pound
Labor 3 direct labor hours per unit @ $ \$ 10.00 $ per hour

Actual:
Material 4,250 pounds purchased and used@$5.65 per poume
Labor $ \quad 6,300 $ direction hours at $ \$ 9.75 $ per hour

Refer to Jenkins Manufacturing Company.What is the labor efficiency variance?
A)$731 F
B)$731 U
C)$750 F
D)none of the answers are correct

Question

Jenkins Manufacturing
The following information is available for Jenkins Manufacturing Company for the month of June when the company produced 2,100 units:
Staudard:
Material                 2 pounds per unit @$5.80 per pound
Labor                    3 direct labor hours per unit @ $ \$ 10.00 $ per hour

Actual:
Material              4,250 pounds purchased and used@$5.65 per poume 
Labor             $ \quad 6,300 $ direction hours at $ \$ 9.75 $ per hour

Refer to Jenkins Manufacturing Company.What is the labor efficiency variance?
A)$731 F
B)$731 U
C)$750 F
D)none of the answers are correct

Quizplus · Accepted Answer

The labor efficiency variance is calculated as (Actual Hours - Standard Hours) x Standard Rate. The standard hours for the actual production are 2,100 units x 3 hours/unit = 6,300 hours. The actual hours worked are also 6,300 hours. Therefore, the variance is (6,300 - 6,300) x $10.00 = $0. Since none of the provided options match this calculation, the correct answer is D, none of the answers are correct.

Jenkins Manufacturing the Following Information Is Available for Jenkins Manufacturing $10.00 \$ 10.00 $10.00

Jenkins Manufacturing
the Following Information Is Available for Jenkins Manufacturing $\$ 10.00$