Answered

Discover how IDNLearn.com can help you find the answers you need quickly and easily. Ask your questions and get detailed, reliable answers from our community of knowledgeable experts.

Chhom Corporation makes a product whose direct labor standards are 0.9 hours per unit and $24 per hour. In November the company produced 7,150 units using 5,935 direct labor-hours. The actual direct labor cost was $124,635. The labor efficiency variance for November is:

Sagot :

Facundobuzzettiidn

Answer:

Direct labor time (efficiency) variance=$17,160 unfavorable

Explanation:

To calculate the direct labor efficiency variance, we need to use the following formula:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (7,150*0.9 - 7,150)*24

Direct labor time (efficiency) variance= (6,435 - 7,150)*24

Direct labor time (efficiency) variance=$17,160 unfavorable

Your presence in our community is highly appreciated. Keep sharing your insights and solutions. Together, we can build a rich and valuable knowledge resource for everyone. IDNLearn.com is committed to providing accurate answers. Thanks for stopping by, and see you next time for more solutions.