Question
Airon Company recently completed 11,200 units of its single product, consuming 34,000 labor hours that cost the firm $598,400. According to manufacturing specifications, each unit
Airon Company recently completed 11,200 units of its single product, consuming 34,000 labor hours that cost the firm $598,400. According to manufacturing specifications, each unit should have required 3 hours of labor time at $18.00 per hour. On the basis of this information, determine Airons labor rate variance and labor efficiency variance.
| Rate | Efficiency | |
| A. | $13,440F | $7,040F |
| B. | $13,440F | $7,040U |
| C. | $13,600F | $7,200F |
| D. | $13,600F | $7,200U |
| E. | $13,600U | $7,200U |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Principles of Auditing An Introduction to International Standards on Auditing
Authors: Rick Hayes, Philip Wallage, Hans Gortemaker
3rd edition
273768174, 978-0273768173
