Question
Paulson Corporation manufactures tablecloths, which is its only product. The standards for tablecloths are as follows: Standard direct materials cost per metre $11 Standard direct
Paulson Corporation manufactures tablecloths, which is its only product. The standards for tablecloths are as follows:
Standard direct materials cost per metre | $11 |
Standard direct materials quantity per tablecloth (metres) | 2 |
Standard direct labour cost per hour | $15 |
Standard direct labour hours per tablecloth | 0.5 |
During the month of September, the company produced 1,000 tablecloths. Related production data for the month follows:
Actual metres of direct material purchased and used | 2,200 |
Actual direct materials total cost | $22,900 |
Actual direct labour hours | 2,100 |
Actual direct labour cost incurred | $17,850 |
What is Paulson Corporation's direct labour efficiency variance for the month?
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