Tout Corporation Makes a Product That Has the Following Direct

question 227

Multiple Choice

Tout Corporation makes a product that has the following direct labor standards: The company budgeted for production of 6,400 units in October, but actual production was 6,500 units. The company used 610 direct labor-hours to produce this output. The actual direct labor rate was $21.80 per hour. The labor efficiency variance for October is:

• A)$872 F
• B)$872 U
• C)$880 U
• D)$880 F

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