Wolery Inc. has provided the following data concerning one of the products in it

Question

Wolery Inc. has provided the following data concerning one of the products in its standard cost system. Inputs Direct labor Standard Quantity or Hours per Unit of Output 0.20 hours Standard Price or Rate $21.70 per hour The company has reported the following actual results for the product for April: Actual output Actual direct labor-hours Actual direct labor rate 8,800 units 1,610 hours $23.30 per hour The labor efficiency variance for the month is closest to: $3,255 F $3,255 U $3,495 U $3,495 F

Explanation / Answer

Labour efficiency variance = (Standard hour-actual hour)standard rate

= (8800*.20-1610)21.70

Labour efficiency variance = 3255 F

so answer is a) $3255 F

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