Everton Inc. has a direct labor standard of 3.5 hours per unit of output. Each employee has a standard wage rate of $14.00 per hour. During March, Everton paid $117,600 to employees for 8,400 hours worked. The company produced 2,500 units during March. What is the direct labor efficiency variance? a) $7,000 unfavorable b) $6,300 favorable c) $6,300 unfavorable d) $4,900 favorable

Everton Inc. has a direct labor standard of 3.5 hours per unit of output. Each employee has a standard wage rate of $14.00 per hour. During March, Everton paid $117,600 to employees for 8,400 hours worked. The company produced 2,500 units during March. What is the direct labor efficiency variance? a) $7,000 unfavorable b) $6,300 favorable c) $6,300 unfavorable d) $4,900 favorable

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid...

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