Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassock’s standard labor cost is $14 per hour. During August, Hassock produced 17,000 units and used 34,200 hours of direct labor at a total cost of $478,200. What is Hassock’s labor efficiency variance for August? Multiple Choice $2,800 favorable. $2,200 unfavorable. $3,400 unfavorable. $1,200 favorable. $2,800 unfavorable.

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Chapter1: Financial Statements And Business Decisions
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Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Hassock’s standard labor cost is $14 per hour. During August, Hassock produced 17,000 units and used 34,200 hours of direct labor at a total cost of $478,200. What is Hassock’s labor efficiency variance for August?

Multiple Choice

  • $2,800 favorable.

  • $2,200 unfavorable.

  • $3,400 unfavorable.

  • $1,200 favorable.

  • $2,800 unfavorable.

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