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ABC manufacturing expects to use 2 Direct Labor Hours (DLH) for every unit produced, and expects to pay $12.00 per DLH.For the month, actual production
ABC manufacturing expects to use 2 Direct Labor Hours (DLH) for every unit produced, and expects to pay $12.00 per DLH.For the month, actual production was 4,000 units, actual DLH used were 9,000, and the actual rate paid per DLH was $12.50.The Direct Labor Efficiency Variance for the month was:
$12,000 favorable
$12,500 unfavorable
$12,000 unfavorable
$12,500 favorable
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