Miolen Corporation has provided the following data concerning its direct labor costs for June: The Labor Efficiency Variance for June would be recorded as a:
A)credit of $50,128.
B)debit of $46,272.
C)debit of $50,128.
D)credit of $46,272.

Question

Miolen Corporation has provided the following data concerning its direct labor costs for June:  The Labor Efficiency Variance for June would be recorded as a:
A)credit of $50,128. 
B)debit of $46,272. 
C)debit of $50,128. 
D)credit of $46,272.

Quizplus · Accepted Answer

SH = 8,500 units × 7.7 hours per units = 65,450 hours
Labor efficiency variance = (AH - SH)× SR
= (70,270 hours - 65,450 hours)× $10.40 per hour
= (4,820 hours)× $10.40 per hour
= $50,128 U
Unfavorable variances are debite

Miolen Corporation Has Provided the Following Data Concerning Its Direct