### Labor Standards and Variance Analysis for Nisqually CorporationNisqually Corporation has established the following labor standards for a particular product:- **Standard labor-hours per unit of output:** 8.3 hours- **Standard labor rate:** $12.10 per hourThe data for the last month's operations concerning this product are as follows:- **Actual hours worked:** 6,100 hours- **Actual total labor cost:** $71,370- **Actual output:** 900 units#### Labor Efficiency Variance CalculationTo determine the labor efficiency variance for the month, utilize the following formulas:**Direct Labor Variances:**- **Labor Rate Variance:** AH(AR - SR)- **Labor Efficiency Variance:** SR(AH - SH)Where:- **AH** = Actual Hours- **AR** = Actual Rate- **SR** = Standard Rate- **SH** = Standard Hours (calculated as standard hours per unit multiplied by actual output)**Description of relevant data for calculation:**- **Standard hours (SH) per unit:** 8.3 hours- **Standard rate (SR):** $12.10 per hour- **Actual hours (AH) worked:** 6,100 hours- **Actual output:** 900 unitsUsing these values, calculate SH as:\[ \text{SH} = \text{Standard hours per unit} \times \text{Actual output} \]\[ \text{SH} = 8.3 \, \text{hours} \times 900 \, \text{units} \]\[ \text{SH} = 7,470 \, \text{hours} \]#### Formula Application:- **Labor Efficiency Variance:** \[ \text{SR}(AH - SH) \]\[ \text{Labor Efficiency Variance} = \$12.10 \times (6,100 \, \text{hours} - 7,470 \, \text{hours}) \]\[ \text{Labor Efficiency Variance} = \$12.10 \times (-1,370 \, \text{hours}) \]\[ \text{Labor Efficiency Variance} = -\$16,577 \, \text{(unfavorable)} \]The labor efficiency variance for the month is **\$16,577 unfavorable**. This indicates that more actual hours were worked compared

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Description: ### Labor Standards and Variance Analysis for Nisqually CorporationNisqually Corporation has established the following labor standards for a particular product:- **Standard labor-hours per unit of output:** 8.3 hours- **Standard labor rate:** $12.10

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Nisqually Corporation has established the following labor standards for a particular product: Standard labor-hours per unit of output 8.3 hours Standard labor rate $12.10per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 6,100 hours A Actual total labor cost $71,370 Actual output 900 units What is the labor efficiency variance for the month?

Nisqually Corporation has established the following labor standards for a particular product: Standard labor-hours per unit of output 8.3 hours Standard labor rate $12.10per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 6,100 hours A Actual total labor cost $71,370 Actual output 900 units What is the labor efficiency variance for the month?

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