Shalom Company produces and sells Peace products. In the current year, the company budgeted the production and sale of 1,100 Peace products. However, actual production and sales were short by 50 units of Peace products. Data for its prime costs are shown below: Direct materials Direct labor Quantity 3 kilos 2 hours Cost 15 per kilo 10 per hour Actual costs to produce Peace products were P48,000 for materials (3,000 kilos were purchased and used) and P18,000 for labor (2,000 hours). What is the labor efficiency variance?
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![Shalom Company produces and sells Peace products. In the current year, the company budgeted the production
and sale of 1,100 Peace products. However, actual production and sales were short by 50 units of Peace products.
Data for its prime costs are shown below:
Direct materials
Direct labor
Quantity
3 kilos
2 hours
Cost
15 per kilo
10 per hour
Actual costs to produce Peace products were P48,000 for materials (3,000 kilos were purchased and used) and
P18,000 for labor (2,000 hours).
What is the labor efficiency variance?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fec653c38-d97f-4701-80f8-bd190a9b53c8%2F3e74842e-cc22-4de8-8d0a-1fdfe3ce2c4d%2Fa3nlx64_processed.png&w=3840&q=75)
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