Cafferty Corporation has provided the following data concerning its direct labor costs for March: The Labor Efficiency Variance for March would be recorded as a:
A)Debit of $3,200
B)Credit of $3,125
C)Credit of $3,200
D)Debit of $3,125

Question

Cafferty Corporation has provided the following data concerning its direct labor costs for March:  The Labor Efficiency Variance for March would be recorded as a:
A)Debit of $3,200 
B)Credit of $3,125 
C)Credit of $3,200 
D)Debit of $3,125

Quizplus · Accepted Answer

SH = 2,000 units × 1.30 DLHs per unit = 2,600 DLHs
Labor efficiency variance = (AH - SH)× SR
= (2,850 DLHs - 2,600 DLHs)× $12.80 per DLH
= (250 DLHs)× $12.80 per DLH
= $3,200 U
An unfavorable variance is debite

Cafferty Corporation Has Provided the Following Data Concerning Its Direct