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A company uses the following standard costs to produce a single unit of output. Direct materials Direct labor Manufacturing overhead 5 pounds at $0.90 per
A company uses the following standard costs to produce a single unit of output. Direct materials Direct labor Manufacturing overhead 5 pounds at $0.90 per pound 0.6 hour at $8.00 per hour 0.6 hour at $3.70 per hour = = = $4.50 $4.80 $2.22 During the latest month, the company purchased and used 46,000 pounds of direct materials at a price of $1.00 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $43,396 based on 5,710 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $18,200 and fixed manufacturing overhead incurred was $15,000. Based on this information, the direct labor efficiency variance for the month was: Multiple Choice $4,604 favorable $2,320 favorable $2,284 unfavorable $2,284 favorable $2,320 unfavorable
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