Electric Zero Produces Relay Units for Generators

question 142

Multiple Choice

Electric Zero produces relay units for generators.Each relay has a standard cost of $67.Standards call for two relays per generator.In July, the company purchased 120 relays for $7,560.The company used 104 relays in the production of 50 generators, with four relays damaged in the installation process.The standard quantity of labor is 20 hours per generator, with a standard wage rate of $23.In July, the company incurred 1,020 labor hours at a cost of $22,950.How much is the labor efficiency variance?

• A)$460 unfavorable
• B)$50 favorable
• C)$510 favorable
• D)$460 favorable

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Definitions:

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