Take a Test-Tillan Brooks-Internet Explorer P https://www.mathad.com/Student Tes

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Take a Test-Tillan Brooks-Internet Explorer P https://www.mathad.com/Student Test: Exam 4-must complete by YOUR exam period This Question: 3 pts This Test: 75 pts Time Remainings 00:33:00 LVN Corporation's direct labor costs and related information for the month of June were as follows Actual total direct labor-hours Standard total direct labor-hours Total direct labor cost 1,150 1,100 $16,100 $600 Unfavorable direct labor rate (rate) variance What is LVN Corporation's direct labor efficiency variance? OA $674 favorable OB. $732 favorable OC $674 unfavorable OD $732 unfavorable Re Pr

Explanation / Answer

Step - 1 Calculation of Standard Rate

Direct Labour Rate Varience = Actual Cost - Standard Cost of the Actual Hours

600 = 16100 (Given in Question)-1150 x Statndard Rate

600-16100 = -1150 x Statndard Rate

-15500 = -1150 x Statndard Rate

Standard Rate = 15500/1150 = 13.48

Step 2 Calculation of Direct Labour Efficiency Varience

Direct Labour Efficiency Varience = Standard Cost of Actual Hours - Standard Cost

= 1150 x 13.48 - 1100 x 13.48

=674 unfavourable

Answer is c 674 unfavourable.

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