Fabiano Corporation makes a product whose direct labor standards are 0.5 hours per unit and $23.00 per hour. In February the company produced 3,300 units using 1,640 direct labor-hours. The actual direct labor cost was $38,540.
-The labor efficiency variance for February is:
A)$230 F
B)$235 F
C)$230 U
D)$235 U

Question

Quizplus · Accepted Answer

SH = 3,300 units F1F1F1S1F1F1F10 0.5 hours per unit = 1,650 hours
Labor efficiency variance = (AH - SH)SR
= (1,640 hours - 1,650 hours)$23.00 per hour
= (-10 hours)$23.00 per hour = $230 F

Fabiano Corporation Makes a Product Whose Direct Labor Standards Are