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Davner Enterprises Recently Used 14,000 Labor Hours to Produce 7,500

Question 59

Multiple Choice

Davner Enterprises recently used 14,000 labor hours to produce 7,500 completed units. According to manufacturing specifications, each unit is anticipated to take two hours to complete. The company's actual payroll cost amounted to $158,200. If the standard labor cost per hour is $11, Davner's labor efficiency variance is:


A) $11,000U.
B) $11,000F.
C) $11,300U.
D) $11,300F.
E) None of the answers is correct.

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