Question
Airon Company recently completed 12,200 units of its single product, consuming 37,000 labor hours that cost the firm $621,600. According to manufacturing specifications, each unit
Airon Company recently completed 12,200 units of its single product, consuming 37,000 labor hours that cost the firm $621,600. 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. | $14,640F | $6,720F |
| B. | $14,640F | $6,720U |
| C. | $14,800F | $6,880F |
| D. | $14,800F | $6,880U |
| E. | $14,800U | $6,880U |
Multiple Choice
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Choice A
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Choice B
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Choice C
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Choice D
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Choice E
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
IFRS edition volume 2
978-0470613474, 470613475, 978-0470616314
