Find the variance and evaluate the cause of labor efficiency

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Reference no: EM132808952

The following labor standards have been established for a particular product:

Standard Labor - Hours per unit of output          2.00 hours
Standard labor rate                                    $ 12.40 per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked      7,200 hours
Actual Total labor cost    $ 88,000
Actual Output               1,550 units

Problem 1: Determine the variance and evaluate the cause of labor efficiency variance for the month.

Reference no: EM132808952

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