1. Question Content Area

   Amanda Corporation produces high-quality leather boots. The company has a standard cost system and has set the following standards for materials and labor:

   Leather (12 strips @ $20)	$240
   Direct labor (10 hours @ $12)	$120
   Total prime cost	$360

   During the year, Amanda produced 180 boots. Actual leather purchased was 1,700 strips at $16 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 1,600 hours at $15 per hour. Calculate the labor efficiency variance.

   $2,400 F $3,000 U $2,400 U $3,000 F