Question
Marv Company's direct labor costs for manufacturing its only product were as follows for October: Standard direct labor hours (DLHs) per unit of product 2
Marv Company's direct labor costs for manufacturing its only product were as follows for October:
| Standard direct labor hours (DLHs) per unit of product | 2 |
|---|---|
| Budgeted finished units for the period | 8,000 |
| Actual number of finished units produced | 6,400 |
| Standard wage rate per direct labor hour (SP) | $ 29.00 |
| Direct labor costs incurred | $ 378,000 |
| Actual wage rate per direct labor hour (AP) | $ 27.00 |
The direct labor efficiency variance for October was:
Multiple Choice
-
$2,400 unfavorable.
-
$22,000 favorable.
-
$28,000 favorable.
-
$34,800 unfavorable.
-
$56,800 unfavorable.
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Modern Auditing
Authors: Guadarshan S. Gill, Cosserat Graham, Leung Philomena, Coram Paul
5th Edition
0471340723, 978-0471340720
