Multiple Choice
Discover Motor Company uses a standard cost system to collect costs related to the production of its toothpick motors. The direct labor standard for each toothpick motor is 1.25 hours at a standard cost of $9.50 per hour.
During the month of May, Discover's toothpick motor production used 5,900 direct labor-hours at a total direct labor cost of $54,575. This resulted in production of 4,800 toothpick motors for May. What is Discover's labor efficiency variance for the month of May?
A) $950 favorable
B) $1,475 favorable
C) $8,975 unfavorable
D) $10,450 unfavorable
Correct Answer:
Verified
Correct Answer:
Verified
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