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A company uses standard costing and produces a single product. It provides the following information for the month of October about labor standards, cost, and

A company uses standard costing and produces a single product. It provides the following information for the month of October about labor standards, cost, and use:

Labor Standards:

  • Standard labor hours per unit: 11 hours per unit
  • Standard wage rate: $27 per labor hour

Actual labor cost and use for the month of October:

  • Actual direct labor hours used: 10,440 labor hours
  • Actual wage rate: $27.80 per labor hour

Planned and Actual Production for October:

  • Actual production level: 1040 units
  • Budgeted production level: 1600 units

Calculate the labor efficiency (quantity) variance for the month of October.

(Enter your answer as a positive number - you will indicate whether this variance is favorable or unfavorable in the next question.)

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