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)$416 F
B)$416 U
C)$816 F
D)$848 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)$416 F 
B)$416 U 
C)$816 F 
D)$848 F

Quizplus · Accepted Answer

SH = 200 units F1F1F1S1F1F1F10 5.4 hours per unit = 1,080 hours
Labor efficiency variance = (AH - SH)SR
= (1,000 hours - 1,080 hours)$10.20 per hour
= (-80 hours)$10.20 per hour = $816 F

The Following Labor Standards Have Been Established for a Particular