Question: #20. The labor efficiency variance for March is: A) $480 favorable B) $480 unfavorable C) $192 favorable D) $192 unfavorable

Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed:

Standard Hours or Quantity Standard Price or Rate Direct materials........................................................................................................3 pounds $0.75 per pound Direct labor ..............................................................................................................0.4 hours. $12 per hour Variable manufacturing overhead ...........................................................................0.4 hours. $9 per hour

During March, the laboratory performed 2,000 core tests. On March 1 no direct materials (sand) were on hand. Variable manufacturing overhead is assigned to core tests on the basis of direct labor hours. The following events occurred during March: 8,600 pounds of sand were purchased and used at a cost of $7,310. 840 actual direct labor hours were worked at a cost of $8,610. Actual variable manufacturing overhead incurred was $3,200.