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During the latest month, the company purchased and used 66,000 pounds of direct materials at a price of $1.30 per pound to produce 10,000 units
During the latest month, the company purchased and used 66,000 pounds of direct materials at a price of $1.30 per pound to produce 10,000 units of output. Direct labor costs for the month totaled $49,130 based on 5,780 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $27,000 and fixed manufacturing overhead incurred was $14,000. Based on this information, the direct labor efficiency variance for the month was:
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