In September, Bubbles Company produced 1,000 units of product. 2,080 units of raw materials were used at a total cost of $303,680. The actual direct labor hours used were equivalent to 97.60% of the standard direct labor hours at a cost of $62,464. Cottons standard costs to produce one unit of its product in thousands is: a. 2 units of raw material at $150 per unit; b. 1/2 hour of DL at $125 per hour. What is the direct labor efficiency variance?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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In September, Bubbles Company produced 1,000 units of product. 2,080 units of raw materials were used at a total cost of $303,680. The actual direct labor hours used were equivalent to 97.60% of the standard direct labor hours at a cost of $62,464. Cottons standard costs to produce one unit of its product in thousands is:

a. 2 units of raw material at $150 per unit;

b. 1/2 hour of DL at $125 per hour.

What is the direct labor efficiency variance? 

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