Steep, Inc How Much Is the Labor Efficiency Variance?
A)$140 Favorable
B)$186

Multiple Choice

Steep, Inc.budgeted 6,000 cup holders for March.Each holder is sold for $12.Actual production for March was 6,300 cup holders.Standards and actual costs follow for March: $\begin{array}{|l|c|c|}\hline & \text { Standards } & \text { Actual } \\ \hline \text { Materials } & 1.1 \text { pounds } @ \$ 2.40 \text { a pound }&6,400 \text { pounds purchased for } \$ 15,040 \text {; }\\&& 6,450 \text { pounds used }\\\hline \text { Labor } & 0.10 \text { hours } @ \$ 14.00 \text { per hour } & 620 \text { hours } @ \$ 14.30 \text { per hour } \\\hline \text { Variable overhead } & \$ 16,800 & \$ 18,400 \\\hline \text { Eixed overhead } & \$ 9,600 & \$ 10,300 \\\hline\end{array}$ How much is the labor efficiency variance?

A) $140 favorable
B) $186 unfavorable
C) $46 unfavorable
D) $280 favorable