Majer Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or RateStandard Cost Per UnitDirect materials6.4ounces$ 3.00per ounce$ 19.20Direct labor0.4hours$ 13.00per hour$ 5.20Variable overhead0.4hours$ 5.00per hour$ 2.00 The company reported the following results concerning this product in February. Originally budgeted output4,800unitsActual output4,900unitsRaw materials used in production30,230ouncesActual direct labor-hours1,910hoursPurchases of raw materials32,600ouncesActual price of raw materials$ 2.90per ounceActual direct labor rate$ 12.40per hourActual variable overhead rate$ 4.90per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor efficiency variance for February is: Multiple Choice A. $650 U B. $650 F C. $620 F D. $620 U

Labour efficiency variance measures the difference between the actual hours worked and the standard…

Answered: Majer Corporation makes a product with…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 8P: Carlo Lee Corp. has established the following standard cost per unit: Although 10,000 units were...

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Majer Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	6.4	ounces	$ 3.00	per ounce	$ 19.20
Direct labor	0.4	hours	$ 13.00	per hour	$ 5.20
Variable overhead	0.4	hours	$ 5.00	per hour	$ 2.00

The company reported the following results concerning this product in February.

Originally budgeted output	4,800	units
Actual output	4,900	units
Raw materials used in production	30,230	ounces
Actual direct labor-hours	1,910	hours
Purchases of raw materials	32,600	ounces
Actual price of raw materials	$ 2.90	per ounce
Actual direct labor rate	$ 12.40	per hour
Actual variable overhead rate	$ 4.90	per hour

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The labor efficiency variance for February is:

Multiple Choice

A. $650 U

B. $650 F

C. $620 F

D. $620 U

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