Question

Mahogany Inc. has an unfavorable total labor variance of $770 for the month of September. It had a favorable labor rate variance of $205. Determine the labor efficiency variance of Mahogany for the month of September. g

Answer 1

Answer:

$975 Unfavorable

Explanation:

Calculation to Determine the labor efficiency variance of Mahogany for the month of September

Using this formula

Labor efficiency variance=Unfavorable total labor variance + Favorable labour rate variance

Let plug in the formula

Labor efficiency variance=$770+$205

Labor efficiency variance=$975 Unfavorable

Therefore the labor efficiency variance of Mahogany for the month of September is $975 Unfavorable