Reference no: EM132765103

Question - Tuscany Statuary Company manufactures bust statues of famous historical figures.

All statues are the same size, and each statue requires the same amount of resources. Tuscany employs a standard costing system and has the following standards in order to produce one statue: standard quantity standard price direct materials 7 pounds $12 per pound direct labor 5 hours $23 per hour.

During 2018, Tuscany produced 7,000 statues using a total of 41,000 direct labor hours. Tuscany had no beginning inventories of any type for 2018. During 2018, Tuscany purchased 59,000 pounds of direct materials at a total cost of $784,700. At December 31, 2019, Tuscany had 6,000 pounds of direct materials in its inventory. The total cost of direct labor for Tuscany during 2018 was $861,000.

Required - Calculate Tuscany's direct labor efficiency variance for 2018. If the variance is favorable, place a minus sign in front of your answer (i.e., -5000). If the variance is unfavorable, simply enter your answer as a number (i.e., 5000).