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Blue Box Beach Chairs has the following standards to make beach chairs:
Standard Quantity Standard Price
Direct materials 2.2 pounds of polywood per chair $3.50 per pound
Direct labor 0.65 hours per chair $13.00 per hour
Question 1: The static budget was based on the production of 6,200 beach chairs. The company used 13,000 pounds of polywood in order to make 6,000 chairs in April. The company purchased 7,000 pounds of polywood at a total cost of $24,150. It also used 3,840 labor hours at a cost of $12.70 per hour. How much is the direct labor efficiency variance?
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