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bernie2981 bernie2981
wrote...
Posts: 3810
8 years ago
Neil's Service Shop performs routine vehicle maintenance. One such service is tire rotations. Neil's reports the following budgeted and actual amounts for tire rotations for the month of August.

Standard direct labor hours per vehicle   0.5
Standard direct labor rate per hour   $17.00
Actual hours worked   480
Actual total labor cost   $8,640
Actual number of vehicles serviced   900

What is the labor efficiency variance for the month of August?
A) $510 unfavorable
B) $510 favorable
C) $900 unfavorable
D) $900 favorable
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
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nucleinuclei
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Posts: 2158
8 years ago
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bernie2981 Author
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8 years ago
Answers my question perfectly.
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