Twister Pty Ltd has set direct labour standards of 3 hours per unit and $5 per hour. During the month 2900 hours at a total cost of $17 400 were used to produce 1000 units. Determine the direct labour efficiency variance.
A) $100 (F)
B) $100 (U)
C) $500 (F)
D) $500 (U)

Question

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The Answer of Twister Pty Ltd has set direct labour standards of 3 hours per unit and $5 per hour. During the month 2900 hours at a total cost of $17 400 were used to produce 1000 units. Determine the direct labour efficiency variance.
A) $100 (F)
B) $100 (U)
C) $500 (F)
D) $500 (U)

Twister Pty Ltd Has Set Direct Labour Standards of 3