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    Labor efficiency variance, direct labor cost, variable overhead

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    The following labor standards have been established for a particular product:

    Standard Labor-hour per unit of output 8.0 hours
    Standards labor rate $13.10 per hour

    The following data pertain to operation concerning the product for the last month:

    Actual hours worked 4,000 hours
    Actual total cost $53,000
    Actual output 400 units

    What is the labor efficiency variance for the month?

    A) $10,600 U
    B) $11,080 U
    C) $11,080 F
    D) $10,480 U

    The following information pertains to Bates Company's direct labor for March:

    Standard direct labor-hours 21,000
    Actual direct labor-hours 20,000
    Favorable direct labor rate variance $8,400
    Standard direct labor rate per hour $6.30

    What was Bates' total direct labor cost for March?
    A) $117,600
    B) $118,000
    C) $134,000
    D) $134,400

    The following standards for variable manufacturing overhead have been established for a company that makes only one product:

    Standard hours unit of output 5.6 hours
    Standard variable overhead rate $19.15 per hour

    The following data pertain to operation for the last month:

    Actual hours 5,100 hours
    Actual total variable overhead cost $99,195
    Actual output 1,100 units

    What is the variable overhead efficiency variance for the month?
    A) $20,299 F
    B) $18,769 F
    C) $1,8484 F
    D) $20,617 F

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    https://brainmass.com/business/labour-management-and-relations/labor-efficiency-variance-direct-labor-cost-variable-overhead-108632

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    The following labor standards have been established for a particular product:

    Standard Labor-hour per unit of output 8.0 hours
    Standards labor rate $13.10 per hour

    The following data pertain to operation concerning the product for the last month:

    Actual hours worked 4,000 hours
    Actual total cost $53,000
    Actual output 400 units

    What is the labor efficiency variance for the month?

    A) $10,600 U
    B) $11,080 U
    C) $11,080 F
    D) $10,480 U

    Labor efficiency variance = difference between actual hours worked x standard ...

    Solution Summary

    This solution is comprised of a detailed explanation and calculation to find labor efficiency variance, direct labor cost, and variable overhead efficiency variance.

    $2.19

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