What is the Direct Labor Efficiency Variance

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Reference no: EM132960891

Question - The following standard costs are given for each book produced at Bordewick's Books for July 2021.

Direct Materials (250 pages @ $0.01 per page) $25.00

Direct Labor (0.5 hours @ $12/hour) 6.00

Variable Manufacturing Overhead (0.5 hours @ $2.20/hour) 1.10

Total Standard Variable Cost per unit $32.10

During July 2021, Bordewick's Books sold 370 books. Actual costs incurred in making the books are as follows:

Materials Purchased: 95,000 pages @ $.015/page $1,425

Materials Used: 93,000 pages

Direct Labor: 148 hours @ $11.50/hour 1,702

Variable Manufacturing Overhead: 333

Required - What is the Direct Labor Efficiency Variance?

A. $74 Favorable

B. $74 Unfavorable

C. $444 Unfavorable

D. $444 Favorable

Reference no: EM132960891

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