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A company has the following standards for manufacturing one unit of its product: - Direct Materials: 60 pounds at $1.50 per pound -Direct Labors 3
A company has the following standards for manufacturing one unit of its product: - Direct Materials: 60 pounds at $1.50 per pound -Direct Labors 3 hours at $12 per hour During May, the company had budgeted to produce 1,800 units of its product, but actually only produced 1,650 units. The following data relate to actual outcomes from May: - The company purchased 114,000 pounds of materials for $188,100. They used all 114,000 pounds of materials in production. - Total direct labor cost amounted to $56,265 for the 5,115 direct labor hours incurred during May. What is the company's direct labor efficiency variance for May? $1,980 Favorable $1,980 Unfavorable $3,420 Favorable $3,420 Unfavorable None of the above
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