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Colt1911 [192]
3 years ago
14

Mochel Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has e

stablished the following standard for the direct labor costs of one unit of product:
Standard Hours Standard Rate Standard Cost
1.3 hours $23.00/hour $29.90

The total factory wages for June were $1,316,000, 80 percent of which were for direct labor. The company manufactured 35,000 units of product during June using 44,800 direct labor hours.The direct labor efficiency variance for June is: __________
Business
1 answer:
oee [108]3 years ago
3 0

Answer:

$16,100 favorable

Explanation:

The computation of the direct labor efficiency variance for June is shown below:

= Standard rate × (standard hours - actual hours)

= $23 × (1.3 × 35,000 - 44,800)

= $16,100 favorable

hence, the direct labor efficiency variance for June is $16,100 favorable

The same should be considered and relevant

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Jiffy-Pop’s popcorn, in this case, is an example of <u>innovative packaging.</u>  

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