ABC Company makes a single product which has the following standards: Direct materials 2 kilograms $4.30 per kilogram Direct labor 3 hours $6.00 per hour Variable overhead 3 hours $6.50 per hour Fixed overhead 3 hours $9.00 per hour The following data pertain to June's operations: Direct labor was $820,500 for 147,000 hours worked Direct material purchases were 110,000 kilograms for $485,000 Variable manufacturing overhead incurred was $986,000 Fixed manufacturing overhead incurred was $1,154,500 93,000 kilograms of direct materials were used The company sold 42,000 units at $130 each Variable manufacturing overhead is applied based on direct labor hours 46,000 units were produced during the year Budgeted production was 45,000 units . At the beginning of June there were no inventories. The labor efficiency variance is: Do not round intermediate calculations. $54,000 U $61,500 F $61,500 U $54,000 F

ABC Company makes a single product which has the following standards: Direct materials 2 kilograms $4.30 per kilogram Direct labor 3 hours $6.00 per hour Variable overhead 3 hours $6.50 per hour Fixed overhead 3 hours $9.00 per hour The following data pertain to June's operations: - Direct labor was $820,500 for 147,000 hours worked - Direct material purchases were 110,000 kilograms for $485,000 - Variable manufacturing overhead incurred was $986,000 - Fixed manufacturing overhead incurred was $1,154,500 - 93,000 kilograms of direct materials were used - The company sold 42,000 units at \$130 each - Variable manufacturing overhead is applied based on direct labor hours - 46,000 units were produced during the year - Budgeted production was 45,000 units - At the beginning of June there were no inventories. The labor efficiency variance is: Do not round intermediate calculations. $54,000U $61,500F $61,500 U $54,000F