Tiktok Corporation has shared the following data about its labor costs for August: Standard wage rate $12.00 per DLH Standard hours 8.8 DLHs per unit Actual wage rate $12.50 per DLH Actual hours 68,120 DLHs Actual output 6,600 units Question: What is the Labor Efficiency Variance for August would be (label whether favorable or unfavorable; no dollar sign and comma)
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Tiktok Corporation has shared the following data about its labor costs for August:
Standard wage rate $12.00 per DLH
Standard hours 8.8 DLHs per unit
Actual wage rate $12.50 per DLH
Actual hours 68,120 DLHs
Actual output 6,600 units
Question: What is the Labor Efficiency Variance for August would be (label whether favorable or unfavorable; no dollar sign and comma)
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