Question: Midgley Corporation makes a product whose direct labor standards are 0.6 hours per unit and $35 per hour. In April the company produced 7,700 units

Midgley Corporation makes a product whose direct labor standards are 0.6 hours per unit and $35 per hour. In April the company produced 7,700 units using 4,120 direct labor-hours. The actual direct labor cost was $86,520.

The labor efficiency variance for April is:

$17,500 U

$17,500 F

$75,180 F

$75,180 U

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