Question

Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor. hours Inputs Direct materials Direct labor Variable manufacturing overhead Standard Quantity or Hours per Unit of Output Standard Price or Rate 5.7 liters $ 5.40 per liter 0.70 hours $20.60 per hour 0.70 hours $ 5.50 per hour The company has reported the following actual results for the product for December Actual output Raw materials purchased Actual price of raw materials Actual cost of raw materials purchased Raw materials used in production Actual direct labor-hours Actual direct labor rate Actual direct labor cost Actual variable overhead rate Actual variable overhead cost 4,100 units 25,100 liters $ 4.80 per liter $120,480 23, 360 liters 2,700 hours $ 21.20 per hour $ 57,240 $ 5.90 per hour $ 15,930 The labor efficiency variance for the month is closest to

$3604 U

$3604 F

$3502F

$3502 U

Answer 1

Answer

• Correct Answer = Option #3: $ 3502 F

Labour Efficiency Variance
(	Standard Hours	-	Actual Hours	)	x	Standard Rate
(	2870	-	2700	)	x	$                        20.60
	3502
	Variance		$              3,502.00			Favourable-F