The Actual Cost of Direct Labor Per Hour Is $16

question 41

Multiple Choice

The actual cost of direct labor per hour is $16.00 and the standard cost of direct labor per hour is $9.50. The direct labor hours allowed per finished unit is 0.25 hour. During the current period, 5700 units of finished goods were produced using 3500 direct labor hours. How much is the direct labor efficiency variance?

• A)$19,712.5 unfavorable
• B)$19,712.5 favorable
• C)$33,200 favorable
• D)$33,200 unfavorable

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Definitions:

Productivity

The measure of efficiency in which goods and services are produced, often evaluated by the output per unit of input.