Fletcher Company collected the following data regarding production of one of its products. Compute the direct labor efficiency variance.
A) $19,125 favorable.
B) $80,250 favorable.
C) $61,125 favorable.
D) $19,125 unfavorable.
E) $80,250 unfavorable.

Question

Fletcher Company collected the following data regarding production of one of its products. Compute the direct labor efficiency variance. 
A) $19,125 favorable. 
B) $80,250 favorable. 
C) $61,125 favorable. 
D) $19,125 unfavorable. 
E) $80,250 unfavorable.

Quizplus · Accepted Answer

AH × SR = (81,500 × $12.75) = $1,039,125
SH × SR = (40,000 × 2 × $12.75) = $1,020,000; Direct labor efficiency variance = $19,125 unfavorable

Fletcher Company Collected the Following Data Regarding Production of One