LR Kinncaid Company Assembles Steel Components for Trains Calculate the Direct Labour Efficiency Variance
A) £48,000 Favorable
B)

Multiple Choice

LR Kinncaid Company assembles steel components for trains.The standard labour cost per unit is:
3 hours @ £3.20 per hour
The actual results for last period were:
$$\begin{array} { l l } \text { Production } & 6,000 \text { components } \\\text { Hours } & 33,000 \\\text { Wage rate (per hour) } & £ 3.25\end{array}$$
Calculate the direct labour efficiency variance

A) £48,000 favorable
B) £48,000 adverse
C) £1,650 favorable
D) £1,650 adverse