Assembly line workers at Thompson Manufacturing worked a total of 8,800 direct labor hours to produce 36,000 units. The standard for producing one unit is 15 minutes at a wage rate of $10. If the actual wage rate was $10.50 per direct labor hour, Thompson’s direct labor efficiency variance is
A) $2,000 favorable
B) $2,000 unfavorable
C) $2,100 favorable
D) $2,100 unfavorable

Question

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The Answer of Assembly line workers at Thompson Manufacturing worked a total of 8,800 direct labor hours to produce 36,000 units. The standard for producing one unit is 15 minutes at a wage rate of $10. If the actual wage rate was $10.50 per direct labor hour, Thompson’s direct labor efficiency variance is
A) $2,000 favorable
B) $2,000 unfavorable
C) $2,100 favorable
D) $2,100 unfavorable

Assembly Line Workers at Thompson Manufacturing Worked a Total of 8,800