Perfect Builders Constructs Houses

question 111

Multiple Choice

Perfect Builders constructs houses. The standard labour rate is $20 per hour, and the standard number of hours is 12,000 hours per home. During the year, it constructed 10 homes using 14,000 labour hours per home and a rate of $22 per hour.
-Refer to the Figure.What was the labour efficiency variance?

• A)$400,000 U
• B)$400,000 F
• C)$440,000 U
• D)$440,000 F