Question

XYZ Company makes one product and has calculated the following amounts for direct labor: AH x AR = $84,000; AH x SR = $83,000; SH x SR = $85,000. Compute the labor efficiency variance.

Answer 1

Based on the various cost rates and hours for XYZ Company, the labor efficiency variance is $2,000 unfavorable

What is the labor efficiency variance?

This can be found as:

= (Actual hours x Standard rate) - (Standard hours x Standard rate)

Solving gives:

= 83,000 - 85,000

= $2,000 unfavorable

Find out more on the labor efficiency variance at https://brainly.com/question/27404735

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