Question
Green Garden Supply budgeted three hours of direct labour per unit at $10.00 per hour to produce 500 units of product. The 500 units were
Green Garden Supply budgeted three hours of direct labour per unit at $10.00 per hour to produce 500 units of product. The 500 units were completed using 1,600 hours of direct labour at $10.50 per hour.
What is the direct labour efficiency variance at Green Garden Supply?
Select one:
a. $1,050 unfavourable
b. $1,000 favourable
c. $1,050 favourable
d. $1,000 unfavourable
Please explain the answer
The standard variable overhead cost rate for the Croskey Company is $12 per unit. Budgeted fixed overhead cost is $60,000. The Croskey Company budgeted 4,000 units for the current period and actually produced 3,860 finished units. Assume that the allocation base for fixed overhead costs is the number of units expected to be produced. What is the production volume variance?
Select one:
a. $3,780 unfavourable
b. $3,780 favourable
c. $2,100 favourable
d. $2,100 unfavourable
please explain
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