The following labor standards have been established for a particular product: The following data pertain to operations concerning the product for the last month: What is the labor efficiency variance for the month?
A)$13,805 U
B)$13,530 U
C)$15,305 U
D)$15,305 F

Question

The following labor standards have been established for a particular product:  The following data pertain to operations concerning the product for the last month:  What is the labor efficiency variance for the month?
A)$13,805 U 
B)$13,530 U 
C)$15,305 U 
D)$15,305 F

Quizplus · Accepted Answer

SH = 1,500 units F1F1F1S1F1F1F10 4 hours per unit = 6,000 hours
Labor efficiency variance = (AH - SH)SR
= (7,100 hours - 6,000 hours)$12.30 per hour
= (1,100 hours)$12.30 per hour = $13,530 U

The Following Labor Standards Have Been Established for a Particular