Question: Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period. Direct labor standard (4 hrs.

Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period.

Direct labor standard (4 hrs. @ $7.10/hr.) $ 28.40 per unit
Actual hours worked 12,600
Actual rate per hour $ 7.40

Multiple Choice

  • $3,780 unfavorable.

  • $4,200 unfavorable.

  • $4,200 favorable.

  • $9,940 favorable.

  • $3,780 favorable.

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