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Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on
Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.
| Inputs | Standard Quantity or Hours per Unit of Output | Standard Price or Rate | |||||||||
| Direct materials | 5.7 | liters | $ | 5.40 | per liter | ||||||
| Direct labor | 0.70 | hours | $ | 20.60 | per hour | ||||||
| Variable manufacturing overhead | 0.70 | hours | $ | 5.50 | per hour | ||||||
The company has reported the following actual results for the product for December:
| Actual output | 4,100 | units | |
| Raw materials purchased | 25,100 | liters | |
| Actual price of raw materials | $ | 4.80 | per liter |
| Actual cost of raw materials purchased | $ | 120,480 | |
| Raw materials used in production | 23,360 | liters | |
| Actual direct labor-hours | 2,700 | hours | |
| Actual direct labor rate | $ | 21.20 | per hour |
| Actual direct labor cost | $ | 57,240 | |
| Actual variable overhead rate | $ | 5.90 | per hour |
| Actual variable overhead cost | $ | 15,930 | |
The labor efficiency variance for the month is closest to:
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