Solution-Compute the direct labor efficiency variance

Compute the direct labor efficiency variance

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Reference no: EM133076812

Question - Linis Company produces a commercial cleaning compound known as Zide. The direct materials and direct labor standards for one unit of Zide are as follows:

	Standard Qty	Standard Price	Standard Cost
Direct materials	4.6 lbs	P2.50/lb.	P11.50
Direct labor	0.2 hr	P35/hr.	P7.00

During the most recent month, the following activity was recorded:

[a] Twenty thousand pounds of material were purchased at a cost of P2.35 per pound.

[b] All of the materials purchased was used to produce 4,000 units of Zide.

[c] 750 hours of direct labor time were recorded at a total labor cost of P30,375.

Required - Compute the direct labor efficiency variance. Indicate whether favorable or unfavorable.

Reference no: EM133076812

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Compute the direct labor efficiency variance

Reference no: EM133076812

Reference no: EM133076812

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