Fender Corporation
Fender Corporation Produced 100 Units of Product XX

Multiple Choice

Fender Corporation
Fender Corporation produced 100 units of Product XX. The total standard and actual costs for materials and direct labour for the 100 units of Product XX are as follows: $\begin{array}{ll} &&\underline{\text { Standard}} &\underline{\text { Actual }}\\ \underline{\text { Materials}}\\\text { Standard: } & 200 \mathrm{~kg} \text { at } \$ 3.00 \text { per kilogram }&\$600 \\\text { Actual: } & 220 \mathrm{~kg} \text { at } \$ 2.85 \text { per kilogram }&&\$627\\\\ \underline{\text { Direct labour}}\\\text { Standard: } & 400 \text { hours at } \$ 15.00 \text { per hour } & 6,000 \\\text { Actual: } & 368 \text { hours at } \$ 16.50 \text { per hour } &&6,072 \end{array}$
-Refer to Perfect Builders. What was the labour efficiency variance?

A) $400,000 U
B) $400,000 F
C) $440,000 U
D) $440,000 F