A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000.
-What is the direct labor efficiency variance?
A) $16,000 unfavorable.
B) $6,000 unfavorable.
C) $22,000 unfavorable.
D) $16,000 favorable.
E) $22,000 favorable.

Question

A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000. 
-What is the direct labor efficiency variance?
A) $16,000 unfavorable.
B) $6,000 unfavorable.
C) $22,000 unfavorable.
D) $16,000 favorable.
E) $22,000 favorable.

Quizplus · Accepted Answer

The Answer of A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000. 
-What is the direct labor efficiency variance?
A) $16,000 unfavorable.
B) $6,000 unfavorable.
C) $22,000 unfavorable.
D) $16,000 favorable.
E) $22,000 favorable.

A Job Was Budgeted to Require 3 Hours of Labor