QUESTION 4 The Ketchum Company has established standards as follows: Direct mate

Question

QUESTION 4 The Ketchum Company has established standards as follows: Direct material.. Direct labor.. variable overhead.. 3 pounds @ $4/pound = $12 per unit 2 hours @ $8/hour = $16 per unit 2 hours @ $5/hour = $10 per unit Actual production figures for the past year were as follows: Units produced.... Direct material used...1,600 pounds Direct material purchased (3,000 pounds. $12,300 ...500 50 hours $7,790 $4,655 Variable overhead cost incurred The labor efficiency variance is: A. $400 F B. $800 F C. $800 U OD $500 F

Explanation / Answer

Labor efficiency variance = SR ( Standard Hours - Actual Hours)

= 8 per hour ( 1000 hours - 950 hours ) = 400 Favorable ..............select option - A

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.