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The following labor standards have been established for a particular product:
Standard Labor - Hours per unit of output 2.00 hoursStandard labor rate $ 12.40 per hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked 7,200 hoursActual Total labor cost $ 88,000Actual Output 1,550 units
Problem 1: Determine the variance and evaluate the cause of labor efficiency variance for the month.
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