Carlton Corporation Carlton Corporation Produces and Sells Faux-Leather Handbags. in the Current

Multiple Choice

Carlton Corporation
Carlton Corporation produces and sells faux-leather handbags. In the current year, the company budgeted for the production and sale of 1000 handbags; however, 900 handbags were actually produced and sold. Each bag has a standard requiring 2 metres of material at a cost of $4.00 per metre and 1 hour of assembly time at a cost of $9.50 per hour. Actual costs for the production of 900 bags were $7215 for materials (1850 metres purchased and used @ $3.90 per metre) and $10 125 for labour (1125 hours @ $9.00 per hour) .
-Carlton's direct labour efficiency variance is:

A) $ 562.50 F
B) $2 137.50 U
C) $1 187.50 U
D) $2 025.00 F