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Gills Company produces fish tanks.During the year, 150,000 fish tanks were produced.Materials and labour standards for producing the fish tanks are as follows: Direct materials

Gills Company produces fish tanks.During the year, 150,000 fish tanks were produced.Materials and labour standards for producing the fish tanks are as follows:

Direct materials (2 sheets of glass @ $2 per sheet)

Direct labour (3 hours @ $8 per hour)

The company used 435,000 actual labour hours at a wage rate of $8.50 per hour.

Calculate Labour efficiency variance

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