Yola Company Manufactures a Product with Standards for Direct Labour

question 16

Multiple Choice

Yola Company manufactures a product with standards for direct labour of 4 direct labour-hours per unit at a cost of $12.00 per direct labour-hour.During June,1,000 units were produced using 4,100 hours at $12.20 per hour.The direct labour efficiency variance was:

• A) $1,200 favourable.
• B) $1,200 unfavourable.
• C) $2,020 favourable.
• D) $2,020 unfavourable.

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