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Use the Following Data to Find the Direct Labor Efficiency

Question 69

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Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period. Direct labor standard (4 hrs. @ $7/hr.) $ 28 per unit Actual hours worked 12,250
Actual rate per hour $ 7.50


A) $12,250 favorable.
B) $6,125 unfavorable.
C) $6,125 favorable.
D) $7,000 unfavorable.
E) $7,000 favorable.

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