Answers
Labor efficiency variance
= (SLH - ALH) *SR
= (30,600*3 - 68,000)*17
= (91,800 - 68,000)*17
= 404,600 F
COMMENT IF YOU FACE ANY ISSUES
.Required information
[The following information applies to the questions displayed below.]
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours, and its standard costs per unit are as follows:
Direct materials: 5 kg at $10.00 per kg | $ | 50.00 |
Direct labour: 3 hours at $17 per hour | 51.00 | |
Variable overhead: 3 hours at $7 per hour | 21.00 | |
Total standard cost per unit | $ | 122.00 |
The company planned to produce and sell 24,000 units in March. However, during March the company actually produced and sold 30,600 units and incurred the following costs:
6. What is the labour efficiency variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Do not round intermediate calculations.)
Labor efficiency variance
= (SLH - ALH) *SR
= (30,600*3 - 68,000)*17
= (91,800 - 68,000)*17
= 404,600 F
COMMENT IF YOU FACE ANY ISSUES
.