Assume the following information appears in the standard cost card for a company that makes...
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Accounting
Assume the following information appears in the standard cost card for a company that makes only one product:
| Standard Quantity or Hours | Standard Price or Rate | Standard Cost | |||
|---|---|---|---|---|---|
| Direct materials | 5 | pounds | $ 11.00 | per pound | $ 55.00 |
| Direct labor | 2 | hours | $ 17.60 | per hour | $ 35.20 |
| Variable manufacturing overhead | 2 | hours | $ 3.00 | per hour | $ 6.00 |
During the most recent period, the following additional information was available:
- 20,000 pounds of material was purchased at a cost of $10.50 per pound.
- All of the material that was purchased was used to produce 3,900 units.
- 8,000 direct labor-hours were recorded at a total cost of $132,000.
What is the direct labor efficiency variance?
Multiple Choice
$3,520 F
$3,520 U
$3,300 F
$3,300 U
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