Question
Barnes Company produces mens ties. The following budgeted amounts were provided by management for the current year: Category Standard Inputs Standard Cost Direct materials 1.1
Barnes Company produces mens ties. The following budgeted amounts were provided by management for the current year:
| Category | Standard Inputs | Standard Cost |
| Direct materials | 1.1 yards per tie | $4.00 per yard |
| Direct labor | 0.32 hours per tie | $9.00 per hour |
Barnes produced and sold 4,000 ties during 2014. Actual performance for the year is:
| Direct Materials | Direct Labor |
| Yards used in production | 4,100 | Labor hours incurred | 1,240 |
| Yards purchased | 3,900 | Actual cost per hour | $9.25 |
| Actual cost per yard | $3.75 |
|
|
How much is the labor efficiency variance?
| $310 unfavorable | ||
| $360 favorable | ||
| $50 favorable | ||
| $1,000 unfavorable |
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