Jones Company has budgeted two hours of direct labor per chair at a standard cost of $20 per hour. During January, 150 actual hours were worked, completing 100 chairs. All were sold and Jones Company actually labor was $21 per hour.

What is Jones Company direct labor efficiency variance for January?

ANSWER

$1,000 U

$2,000 F

$1,000 F

• $2,000 U