Question

Answer the following question using the information below:

Answer 1

Answer:

O None of these answers are correct.

Explanation:

The computation of the direct manufacturing labor efficiency variance is shown below;

= Standard labor rate × (Standard hours for actual output - Actual hours)

where,  

Standard labor rate is $15

Standard hours for actual output would be

= 10,000 containers × 0.05 hours

= 500 hours

And, actual hour is 500 hours

Now put these values to the above formula  

So, the value would equal to  

= $15 × (500 hours - 500 hours)

= $0