What is the labour efficiency variance for the month

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Question - The following labour standards have been established for a product:

Standard labour hours per unit of output 7.5 hours Standard labour rate $15.25 per hour.

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

Actual hours worked 9,600 hours

Actual total labour cost $144,480

Actual units of output 1,200

Required - What is the labour efficiency variance for the month?

a. $7,230 U.

b. $7,230 F.

c. $9,150 F.

d. $9,150 U.

Reference no: EM132768364

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