Question: Beyonc is looking at a monthly performance report for her lemonade stand for last month. She has been provided with the following standard cost per

Beyonc is looking at a monthly performance report for her lemonade stand for last month. She has been provided with the following standard cost per batch of lemonade:

Cost Standard Quantity (Input per Batch) Standard Price
Direct Materials 0.8 pounds $5.00 per pound
Direct Labor 1.2 hours $15.00 per hour

Standard Costs are based on machine hours. Last month, Beyonc's lemonade stand produced 150 batches of lemonade and incurred the following costs:

a. Purchased 100 pounds of materials at a cost of $3.13 per pound.

b. Used 96 pounds of materials in production. (Finished goods and work in process inventories can be ignored).

c. Worked 159 direct labor-hours at a cost of $16.12 per hour.

What is Beyonc's labor efficiency variance for last month?

Enter your answer as a positive number (note Favorable or Unfavorable for the next question).

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!