Meadow Corp. manufactures custom chairs. It takes 3 hours of direct labor to produce one chair. Meadow's standard labor cost is $15 per hour. During the month of October, Meadow produced 8,000 chairs and used 24,500 hours of direct labor at a total cost of $372,500. What is Meadow's labor efficiency variance for October?

Meadow Corp. manufactures custom chairs. It takes 3 hours of direct labor to produce one chair. Meadow's standard labor cost is $15 per hour. During the month of October, Meadow produced 8,000 chairs and used 24,500 hours of direct labor at a total cost of $372,500. What is Meadow's labor efficiency variance for October?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PA: Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the...

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