Question

The following information relates to the direct labor at Padmaja Manufacturing, Inc. for March: Actual Standard...

The following information relates to the direct labor at Padmaja Manufacturing, Inc. for March:

Actual Standard
Labor cost per hour $ 18.00 $ 17.50
Labor hours per unit produced 1.5 1.4

During March, Padmaja produced 2,100 units. What is Padmaja's labor efficiency variance for March?

rev: 11_21_2017_QC_CS-108941

Multiple Choice

$3,675 Unfavorable

$1,575 Favorable

$3,780 Unfavorable

$2,625 Unfavorable

Homework Answers

Answer #1
Padmaja Manufacturing, Inc.
Answer) Units Produced 2100 units
Actual direct labour hour 3150 Hours
Actual Direct Labor Cost(3150*$18) $ 56,700.00
Standard hours required to manufacture one unit 1.4 Hours
Standard hours for actual output 2940 Hours
Standard price per hour $          17.50 per hour
Standard rate $ 51,450.00
The Direct Labor efficiency variance
(AH-SH)*SR=(3150-2940)*$17.5 3675 (Unfavourable)
Ans $3675 (Unfavourable)
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