Question
The following cost information is for Harry Company. Actual results Total cost of purchasing material $58,000 Number of labor hours worked 1,000 hours Number of
The following cost information is for Harry Company.
Actual results
Total cost of purchasing material $58,000
Number of labor hours worked 1,000 hours
Number of material pounds used in production 5,850 pounds
Total labor cost $48,000
Number of units produced 300 units
Number of material pounds purchased 6,250 pounds
Harry Company has established the following standards.
Price per pound of materials $10.00 per pound
Number of pounds of material to produce one unit 20 pounds
Standard labor rate $50.00 per hour
Number of labor hours to produce one unit 3 hours
Compute Harrys Labor Efficiency Variance.
$5,000 Unfavorable $3,000 Favorable $2,000 Favorable $3,000 Unfavorable $2,000 Unfavorable $5,000 Favorable
I don't understand why this is wrong... I am doing (1000-900)*50. Can someone help me understand what I am doing wrong and what the correct answer is? |
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