12

Total production of 1,000 units of finished goods required 2,000 actual hours at $11.50 per hour. The standard is 3 hours per unit of finished goods, at a standard rate of $14.00 per hour. Which of the following statements is true?

Question 12 options:

a)

The labor efficiency variance is $5,000 favorable.

b)

The labor rate variance is $5,000 unfavorable.

c)

none of these

d)

The labor rate variance is $5,000 favorable.

e)

The labor efficiency variance is $5,000 unfavorable.