Question
Airon Company recently completed 11,300 units of its single product, consuming 34,000 labor hours that cost the firm $584,800. According to manufacturing specifications, each unit
Airon Company recently completed 11,300 units of its single product, consuming 34,000 labor hours that cost the firm $584,800. According to manufacturing specifications, each unit should have required 3 hours of labor time at $17.60 per hour. On the basis of this information, determine Airons labor rate variance and labor efficiency variance.
| Rate | Efficiency | |
| A. | $13,560F | $1,720F |
| B. | $13,560F | $1,720U |
| C. | $13,600F | $1,760F |
| D. | $13,600F | $1,760U |
| E. | $13,600U | $1,760U |
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Auditing and Assurance Services A Systematic Approach
Authors: William Messier, Steven Glover, Douglas Prawitt
9th edition
1308361491, 77862333, 978-1259248290, 9780077862336, 1259162346, 978-1259162343
