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Midgley Corporation makes a product whose direct labor standards are 0.6 hours per unit and $38 per hour. In April the company produced 7,850 units using 4,210 direct labor-hours. The actual direct labor cost was $88,410.
The labor efficiency variance for April is:
A) $19,000 U
B) $19,000 F
C) $90,570 F
D) $90,570 U
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The company uses a job-order costing system. How would you recommend that manufacturing overhead cost be assigned to production? Be specific, and shoe computations.
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