Forker Corporation has provided the following data concerning its direct labor costs for April: The Labor Efficiency Variance for April would be recorded as a:
A)debit of $54,634.
B)debit of $57,875.
C)credit of $54,634.
D)credit of $57,875.

Question

Forker Corporation has provided the following data concerning its direct labor costs for April:  The Labor Efficiency Variance for April would be recorded as a:
A)debit of $54,634. 
B)debit of $57,875. 
C)credit of $54,634. 
D)credit of $57,875.

Quizplus · Accepted Answer

SH = 3,600 units F1F1F1S1F1F1F10 8.4 hours per units = 30,240 hours
Labor efficiency variance = (AH - SH)SR
= (25,610 hours - 30,240 hours)$12.50 per hour
= (-4,630 hours)$12.50 per hour = $57,875 F

Forker Corporation Has Provided the Following Data Concerning Its Direct