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Clean Cut operates a weekly landscape service for 70 commercial clients. The company's owner uses a standard cost accounting system in order to maintain control
Clean Cut operates a weekly landscape service for 70 commercial clients. The company's owner uses a standard cost accounting system in order to maintain control over its operations. For the third week of April, the company budgeted to service 70 properties. The standard allowance per property was 1.2 hours for a total of 84 hours. The standard cost of labor was $20 per hour. Actual results for the week indicated that the company used 78 hours to service the 70 properties. The company pald labor a total of $1,638. For convenience, this information is summarized in the table below. Budgeted Standard Actual 70 70 84 78 Number of Properties Serviced Number of employee hours Cost of Labor per hour Total Labor Cost $20 /hour $1,680 $1,638 What is the labor Efficiency Variance for the week? $78 Unfavorable $78 Favorable $120 Favorable $204 Unfavorable Sve AA bers
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