Question
Airon Company recently completed 11,500 units of its single product, consuming 35,000 labor hours that cost the firm $588,000. According to manufacturing specifications, each unit
Airon Company recently completed 11,500 units of its single product, consuming 35,000 labor hours that cost the firm $588,000. According to manufacturing specifications, each unit should have required 3 hours of labor time at $17.20 per hour. On the basis of this information, determine Airons labor rate variance and labor efficiency variance.
| Rate | Efficiency | |
| A. | $13,800F | $8,400F |
| B. | $13,800F | $8,400U |
| C. | $14,000F | $8,600F |
| D. | $14,000F | $8,600U |
| E. | $14,000U | $8,600U |
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Introduction To AccountingAn Integrated Approach
Authors: Penne Ainsworth, Dan Deines
8th Edition
1119600103, 9781119600107
