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Labor Efficiency Variance explained in this solution

Following labor standards have been established for a product

standard labor hours per unit of output 8 hours
standard labor rate $13.10 per hour

the following data pertain to operations concerning the product for the last month:

actual hours worked 4,000 hours
actual total labor 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 11080 F
D 10480 U

Solution Preview

Following labor standards have been established for a product

standard labor hours per unit of output 8 hours
standard labor rate $13.10 per hour ...

Solution Summary

This solution is comprised of a detailed explanation to find the labor efficiency variance.

$2.19