Multiple Choice
Bowser Corporation produces compressors for automobile air conditioning units. The standard quantity of labor allowed per compressor is 10 minutes and the standard wage rate is $30 per hour. In March, the company produced 20,000 compressor units using 3,200 hours of labor at a total wage cost of $102,400. What was the labor efficiency variance for March?
A) $6,400 Favorable.
B) $4,000 Unfavorable.
C) $4,000 Favorable.
D) $2,400 Unfavorable.
Correct Answer:
Verified
Correct Answer:
Verified
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