Madrid Co. has a direct labor standard of 4 hours per unit of output. Each employee has a standard wage rate of $11.00 per hour. During February, Madrid Co. paid $99,500 to employees for 9,200 hours worked. 2,430 units were produced during February. What is the direct labor efficiency variance? (a) $1,700 favorable (b) $5,720 favorable (c) $852 favorable (d) $7,420 favorable
Madrid Co. has a direct labor standard of 4 hours per unit of output. Each employee has a standard wage rate of $11.00 per hour. During February, Madrid Co. paid $99,500 to employees for 9,200 hours worked. 2,430 units were produced during February. What is the direct labor efficiency variance? (a) $1,700 favorable (b) $5,720 favorable (c) $852 favorable (d) $7,420 favorable
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...
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I want to this question answer general Accounting
![Madrid Co. has a direct labor standard of 4 hours
per unit of output. Each employee has a standard
wage rate of $11.00 per hour. During February,
Madrid Co. paid $99,500 to employees for 9,200
hours worked. 2,430 units were produced during
February. What is the direct labor efficiency
variance?
(a) $1,700 favorable
(b) $5,720 favorable
(c) $852 favorable
(d) $7,420 favorable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F370b7074-cac5-4592-84a9-28247270eb26%2F4439b625-d893-4cf0-8b22-db4a91dc087e%2Fophcyc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Madrid Co. has a direct labor standard of 4 hours
per unit of output. Each employee has a standard
wage rate of $11.00 per hour. During February,
Madrid Co. paid $99,500 to employees for 9,200
hours worked. 2,430 units were produced during
February. What is the direct labor efficiency
variance?
(a) $1,700 favorable
(b) $5,720 favorable
(c) $852 favorable
(d) $7,420 favorable
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