Adler Industries uses a standard cost system. Adler has established the following standards for one unit of product: standard labor of 0.25 hour and standard wage rate of $12 per hour. During January, Adler used 5,000 hours of direct labor and paid $62,500 in wages in producing 18,700 units. Calculate the direct labor efficiency variance and indicate whether the variance is favorable or unfavorable. Direct labor efficiency variance $ 4 eTextbook and Media

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Adler Industries uses a standard cost system. Adler has established the following standards for one unit of product: standard labor of
0.25 hour and standard wage rate of $12 per hour. During January, Adler used 5,000 hours of direct labor and paid $62,500 in wages in
producing 18,700 units.
Calculate the direct labor efficiency variance and indicate whether the variance is favorable or unfavorable.
Direct labor efficiency variance
$
4
eTextbook and Media
Transcribed Image Text:Adler Industries uses a standard cost system. Adler has established the following standards for one unit of product: standard labor of 0.25 hour and standard wage rate of $12 per hour. During January, Adler used 5,000 hours of direct labor and paid $62,500 in wages in producing 18,700 units. Calculate the direct labor efficiency variance and indicate whether the variance is favorable or unfavorable. Direct labor efficiency variance $ 4 eTextbook and Media
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