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Determine the direct labour efficiency variance

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Problem 1: Twister Pty Ltd has set direct labour standards of 3 hours per unit and $5 per hour. During the month 2,900 hours at a total cost of $17,400 were used to produce 1,000 units. Determine the direct labour efficiency variance.

Select one:

a. $100 favourable
b. $500 favourable
c. $100 unfavourable
d. $500 unfavourable

Reference no: EM132654286

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