Accounting · Variance Analysis
A company operating a standard costing system has the following direct labour standards per unit for one of its products: 4 hours at $12.50 per hour. Last month when 2,195 units of the product were manufactured, the actual direct labour cost for the 9,200 hours worked was $110,750. What was the direct labour efficiency variance for last month?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$5,250 adverse✓
- 2$5,250 favourable
- 3$4,250 adverse
- 4$4,250 favourable
Correct answer
$5,250 adverse
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