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When auto manufacturer BMW purchased the RollsminusRoyce brand name, BMW had to hire and train...

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Question

Accounting

When auto manufacturer BMW purchased the

RollsminusRoyce

brand name, BMW had to hire and train a new staff of assembly workers. The new workers were paid

$26.00

per hour, worked a total of

7,600

hours, and produced

2,400

cars. BMW budgeted for a standard labor rate of

$32.00

per hour and

1.75

direct labor hours per car. What is the direct labor efficiency variance for the

RollsminusRoyce

division?

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