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Andrej [43]
3 years ago
15

Multiple Choice Question Use the following information to calculate the labor efficiency variance for Adkinson Company. Actual h

ours used 5,500; Standard hours allowed 5,800; Actual labor rate $14.75 per hour; and Standard labor rate $14.00 per hour.
Business
1 answer:
Taya2010 [7]3 years ago
4 0

Answer:

$4,200 Favorable.

Explanation:

$14.00 x (5,800 - 5,500) = $4,200 Favorable. The labor efficiency variance is calculated using the standard, not the actual, labor rate.

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