Use the Following Data to Find the Direct Labor Efficiency

question 108

Multiple Choice

Use the following data to find the direct labor efficiency variance.
$\begin{array}{ll}\text { Direct labor standard (4 hrs. @ } & \$ 28 \text { per unit } \\\$ 7 / \mathrm{hr} \text {.) } & \\\text { Actual hours worked per unit } & 3.5 \text { hours } \\\text { Actual units produced } & 3,500 \text { units } \\\text { Actual rate per hour } & \$ 7.50\end{array}$

• A) $6,125 unfavorable.
• B) $7,000 unfavorable.
• C) $7,000 favorable.
• D) $12,250 favorable.
• E) $6,125 favorable.

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Definitions:

HRM Effectiveness

The efficiency and performance of human resource management in meeting the organization's goals and employee satisfaction.

Maturity

Maturity in a business context refers to the stage at which an organization or process has reached its maximum potential or development, often characterized by a period of stability and high performance.

Customer Satisfaction

The measure of how products or services provided by a company meet or surpass customer expectation.

Employee Attitudes

The perceptions, feelings, and beliefs that employees have towards their work, colleagues, and organization.