Tanner Textiles produces hand-woven blankets. Each blanket requires 1.5 hours of direct labor. The standard labor rate is $15 per hour. In June, the company produced 12,000 blankets using 18,800 labor hours, and incurred total labor costs of $282,000. What is the labor efficiency variance?

Tanner Textiles produces hand-woven blankets. Each blanket requires 1.5 hours of direct labor. The standard labor rate is $15 per hour. In June, the company produced 12,000 blankets using 18,800 labor hours, and incurred total labor costs of $282,000. What is the labor efficiency variance?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid...

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Can you help me solve this general accounting question using the correct accounting procedures?

Tanner Textiles produces hand-woven blankets. Each blanket
requires 1.5 hours of direct labor. The standard labor rate is $15
per hour. In June, the company produced 12,000 blankets using
18,800 labor hours, and incurred total labor costs of $282,000.
What is the labor efficiency variance?

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