Accounting · Variance Analysis
A company produces a product that has a standard labour requirement of 4 hours per unit. During 20X3, 7,700 units were produced, and the actual hours worked were 28,000 hours. The standard labor rate is $10 per hour. What is the direct labour efficiency variance for the company in 20X3?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$2,800 (Favorable)✓
- 2$2,800 (Adverse)
- 3$2,100 (Favorable)
- 4$400 (Adverse)
Correct answer
$2,800 (Favorable)
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