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Hassock Corp. produces woven wall hangings. It takes 3 hours of direct labor to produce a single wall hanging. Hassocks standard labor cost is $13

Hassock Corp. produces woven wall hangings. It takes 3 hours of direct labor to produce a single wall hanging. Hassocks standard labor cost is $13 per hour. During August, Hassock produced 9,000 units and used 27,160 hours of direct labor at a total cost of $323,220. What is Hassocks labor efficiency variance for August?

Multiple Choice

  • $27,780 unfavorable.

  • $4,160 favorable.

  • $2,080 favorable.

  • $2,080 unfavorable.

  • $31,940 unfavorable.

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