Beta Enterprise developed standard costs for direct material and direct labour. In 2021, Beta estimated the following
Question:
Beta Enterprise developed standard costs for direct material and direct labour. In 2021, Beta estimated the following standard cost (per unit) for one of their major products, BX100.
Budgeted quantity Budgeted price
Direct materials 0.65 pounds $71 per pound
Direct labour 0.32 hours $30.47 per hour
During April, Beta produced and sold 19570 units of the product, using 22205 pounds of direct materials at an average cost per pound of $79 and 7144 direct manufacturing labour-hours at an average wage of $35.28 per hour.
The direct manufacturing labour efficiency variance during April is $________. (If the variance is unfavourable, present your answer as a negative (e.g., -100), if it is a favourable variance, present as it is (e.g., 100)). (Round your final answer to the nearest dollar.)
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan