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Saxena Corporation makes a product that has the following direct labor standards:Standard direct ...

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Saxena Corporation makes a product that has the following direct labor standards:Standard direct ...

Saxena Corporation makes a product that has the following direct labor standards:

Standard direct labor-hours	0.1	hours per unit
Standard direct labor rate	$ 15.00	per hour
Standard cost	$ 1.50	per unit

The company budgeted for production of 2,900 units in July, but actual production was 2,800 units. The company used 250 direct labor-hours to produce this output. The actual direct labor rate was $14.10 per hour.

The labor efficiency variance for July is:

▸

$450 U

▸

$423 F

▸

$423 U

▸

$450 F

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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