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irakobra [83]
3 years ago
8

The following labor standards have been established for a particular product: Standard labor-hours per unit of output 10 hours S

tandard labor rate $ 13.80 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 7,800 hours Actual total labor cost $ 104,520 Actual output 1,050 units What is the labor efficiency variance for the month?
Business
1 answer:
Anna11 [10]3 years ago
7 0

Actual Hours = 3,800 Hours

Standard Hours = 500 × 8.7

= 4,350 Hours

Standard Rate = $18.10

Labor Efficiency Variance = (Actual hours – Standard hours) × Standard rate

= (3,800 – 4,350) × $18.10

= $9,955 Favorable

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