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Oeztomheducation.com/hmtpx Gmail tUnversity Home -BankMobile U utpro Equitor portal Power ball ini Linkedin offic NTING it 6 Chapter 8 Quiz Question 8 (of 8) value: 2.00 points Midgley Corporation makes a product whose drect labor standards are 0 6 hours per unit and $35 per hour. in Apri the company produced 7,700 units using 4.120 direct labor-hours. The actual direct labor cost was $86.520 The labor efficlency vanance for April is O $17,500 U O $17.500F O $75.180 F O $75.180 U O Type here to search 8 6 7 8

Explanation / Answer

Standard Hours = 7700 units * 0.6 hours per unit = 4620 hours

Labour Efficiency Variance = (Actual Hours - Standard Hours) * Standard Rate

= (4120 hours - 4620 hours) * $ 35 per hour

= (-500 hours) * $ 35 per hour = $ 17500 F

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