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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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