A company manufactures a product which requires 2 hours of direct labour per unit. Normal output is

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A company manufactures a product which requires 2 hours of direct labour per unit. Normal output is 1400 units and the standard labour rate is $6.50 per hour.

In one month the company manufactured 1300 units of the product in 2500 direct labour hours costing $17 550.

What is the direct labour efficiency variance?

A. $650 (favourable)

B. $675 (favourable)

C. $1300 (favourable)

D. $1350 (favourable)

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Accounting A Level And AS Level

ISBN: 9780521539937

1st Edition

Authors: Harold Randall

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Question Posted: Aug 29, 2023 08:17 AM

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A company manufactures a product which requires 2 hours of direct labour per unit. Normal output is

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To calculate the direct labor efficiency variance you can use the following formula Dir...View the full answer

Accounting A Level And AS Level

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