Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging.

Hassock Corp. produces woven wall hangings. It takes 2 hours of direct labor to produce a single wall hanging. Bartels' standard labor cost is $12 per hour. During August, Bartels produced 10,000 units and used 21,040 hours of direct labor at a total cost of $250,376. What is Bartels' labor efficiency variance for August?

$12,480 favorable.

$10,376 unfavorable.

$14,584 unfavorable.

$4,160 favorable.

$12,480 unfavorable.

AH * SR	21,040 * $12	$252,480
SH * SR	(2 × 10,000) * $12	240,000
	Direct labor efficiency variance	$12,480	U

Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period.
 

Direct labor standard (4 hrs. @ $7/hr.)	$28 per unit
Actual hours worked	12,250
Actual rate per hour	$7.50

$6,125 unfavorable.

$7,000 unfavorable.

$7,000 favorable.

$12,250 favorable.

$6,125 favorable.

AH * SR	(12,250) * $7 /hr.	$85,750
SH * SR	(3,500 units * 4 hours/unit) * $7/hr.	98,000
	Total direct labor variance	$12,250	F

A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000. What is the total labor cost variance?

$2,000 unfavorable.

$3,000 unfavorable.

$6,000 unfavorable.

$8,000 unfavorable.

$9,000 unfavorable.

AH * AR	Given	$198,000
SH * SR	(3 hours/unit * 8,000 units) * $8/hour	192,000
	Total direct labor variance	$6,000	U