Hassock Corp. produces woven wall hangings. It takes 4 hours of direct labor to produce a single wall hanging. Hassock standard
labor cost is $17 per hour. During August, Hassock produced 11,900 units and used 48,180 hours of direct labor at a total cost of $815,860. What is Hassocks labor efficiency variance for August
Labour efficiency variance is the difference between the actual time taken to achieve a given production output less the standard hours allowed for same multiplied by the standard labour rate
Hours
11,900 units should have take (11,900× 4hrs) 47,600
