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vivado [14]
3 years ago
6

Banner Systems is a​ start-up company that makes connectors for​ high-speed Internet connections. Banner has budgeted three hour

s of direct labor per​ connector, at a standard cost of $ 13 per hour. During​ August, technicians actually worked 190 hours completing 78 connectors. All 78 connectors actually produced were sold. Banner paid the technicians $ 13.80 per hour. What is Banner's direct labor efficiency variance for​ August?
Business
1 answer:
egoroff_w [7]3 years ago
6 0

Answer:

572 Favorable

Explanation:

Direct Labour efficiency Variance:

= (Standard Labour Hour - Actual Labour Hour) × Standard Rate

= [(78 connectors × 3 hours of direct labor per​ connector) - (190 hours)] × $13 per hour

= [234 hours of direct labor - 190 hours] × $13 per hour

= 44 hours × $13 per hour

= $572 Favorable

Therefore, Banner's direct labor efficiency variance for​ August is $572 Favorable.

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