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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 $0.80 per
A company uses the following standard costs to produce a single unit of output. Direct materials Direct labor Manufacturing overhead 5 pounds at $0.80 per pound 0.5 hour at $8.00 per hour 0.5 hour at $3.00 per hour -$4.00 -$4.00 -$1.50 During the latest month, the company purchased and used 48,000 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 $36,806 based on 4,780 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $12,000 and fixed manufacturing overhead incurred was $13,000. Based on this information, the direct labor efficiency variance for the month was: Multiple Choice $3,194 favorable $1,434 favorable $1,760 unfavorable $1,760 favorable $1,434 unfavorable
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