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never [62]
2 years ago
9

A job was budgeted to require 3 hours of labor per unit at $11.00 per hour. The job consisted of 8,000 units and was completed i

n 22,000 hours at a total labor cost of $269,500. What is the direct labor efficiency variance
Business
1 answer:
stira [4]2 years ago
8 0

Answer:

Direct labor time (efficiency) variance= $22,000 favorable

Explanation:

<u>To calculate the direct labor efficiency variance, we need to use the following formula:</u>

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (3*8,000 - 22,000)*11

Direct labor time (efficiency) variance= (24,000 - 22,000)*11

Direct labor time (efficiency) variance= $22,000 favorable

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