The labor efficiency variance for May for Polaco Corporation is <u>$4,320 Favorable</u>.
<h3>What is the labor efficiency variance?</h3>
The labor efficiency variance shows the difference between the actual direct labor hours worked and budgeted direct labor hours,
The labor efficiency variance is computed as the Standard hours allowed for production (SH) – actual hours taken (AH) × standard rate.
<h3>Data and Calculations:</h3>
Standard direct labor-hours per unit = 0.4 hours
Standard direct labor rate = $24 per hour
Production in May = 8,500 units
Actual hours used = 3,220 hours
Standard hours allowed = 3,400 hours (8,500 x 0.4)
Labor efficiency variance = $4,320 (3,400 - 3,220 x $24)
Thus, the labor efficiency variance for May for Polaco Corporation is <u>$4,320 Favorable</u>.
Learn more about calculating labor efficiency variance at brainly.com/question/13136127
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