What is the labor efficiency variance for the month? Select one: a. $9,240 F b. $9,240 U C. 55,955 U d. $6,090 U
What is the labor efficiency variance for the month? Select one: a. $9,240 F b. $9,240 U C. 55,955 U d. $6,090 U
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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![The following labor standards have been established for a particular product:
Standard labor-hours per unit of output
Standard labor rate
5.0 hours
$19.85 per hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked
7.300 hours
Actual total labor cost
$148.190
Actual output.
1.400 units
What is the labor efficiency variance for the month?
Select one:
a. $9,240 F
b. $9,240 U
C. $5,955 U
d. $6,090 U](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2b1d8978-33a4-4bea-933f-85d1ab6d7684%2F9c2f0497-7980-43f9-9655-22fd45ae176e%2F07kgcg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following labor standards have been established for a particular product:
Standard labor-hours per unit of output
Standard labor rate
5.0 hours
$19.85 per hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked
7.300 hours
Actual total labor cost
$148.190
Actual output.
1.400 units
What is the labor efficiency variance for the month?
Select one:
a. $9,240 F
b. $9,240 U
C. $5,955 U
d. $6,090 U
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