Answer:
$22,620
Explanation:
Labor efficiency is a key performance indicator that tells how efficient the production time is managed.
labor efficiency variance is the difference between the standard and the actual hours used in production multiplied by the standard labor rate.
Based on the information given in the scenario, the actual production information is
Actual hour : 7000
Actual unit produced : 950
Total labor cost : $88,200
Actual labor rate : $12,6
Actual hr/unit : 7.36hr
Standard information
Labor rate : $13
Standard hr / unit : 9.2hr
Standard hr for 950 units :8740hr
standard cost :$113,620
Labor efficiency variance :( 8740-7000) *$13 = $22,620