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Hott Co., an appliance manufacturer, received an order for 5,000 toasters. Hott budgeted 1,600 hours at $12 per hour to fill the order. Hott's employees
Hott Co., an appliance manufacturer, received an order for 5,000 toasters. Hott budgeted 1,600 hours at $12 per hour to fill the order. Hott's employees used 1,700 hours to build the 5,000 toasters at a direct labor cost of $20,000. Hott has 10 employees who work a standard 40-hour week. What is the direct labor efficiency variance for this batch of toasters? $1,200 favorable. $400 favorable. $1,200 unfavorable. $800 unfavorable
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