Europa Company manufactures only one product. Presented below is direct labor information for November. Standard direct...

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Europa Company manufactures only one product. Presented below is direct labor information for November. Standard direct labor

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Answer 1

Answer #1

Direct labor efficiency variance = (standard hour-actual hour)*standard rate
actual hour of production = total direct labor /actual rate per hour
actual hour of production = 397800/17 = 23400 hours

standard hour of actual production = standard hour*finished unit produce
standard hour of actual production = 4.20*5200 = 21840 hours

Direct labor efficiency variance = (21840-23400)*20.20
Direct labor efficiency variance = 31512 Unfavorable
Option "31512 unfavorable " is CORRECT

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Answer 2

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