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Standard Tires' Labor Standard for the Production of One Bicycle

Question 32

Multiple Choice

Standard Tires' labor standard for the production of one bicycle tire is 4.5 hours at $8.50 per hour.During October, the company's employees produced 140,000 tires, using 610,000 hours at a total cost of $5,328,400.How much is Standard Tire's labor efficiency variance?


A) $143,400 unfavorable
B) $26,600 favorable
C) $170,000 favorable
D) $313,400 favorable

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