Reference: 21_05 A Job Was Budgeted to Require Three Hours of Labor

question 139

Multiple Choice

Reference: 21_05
A job was budgeted to require three hours of labor per unit at $8 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000.
-What is the total labor efficiency variance?

• A) $22,000 unfavorable
• B) $16,000 unfavorable
• C) $6,000 unfavorable
• D) $16,000 favorable
• E) $22,000 favorable

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