Ally Mg uses a standard cost system and its July production of 1,800 units involved...
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Accounting
Ally Mg uses a standard cost system and its July production of 1,800 units involved actual direct labor costs of $242,000 for 5,500 hours worked (AQ). The budget for July called for production of 2,000 units with 6,000 direct labor hours at $40.00 per hour (SP) Ally's direct labor efficiency variance for July, to the nearest dollar, was: Multiple Choice $2,000 unfavorable. $20,000 favorable. $2,000 unfavorable. $20,000 favorable. $4,000 unfavorable. $22,000 unfavorable. $26,000 unfavorable
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