Precision Inc.’s standard cost per unit, based on a budgeted level of production of 400 units, is as follows:
|
Raw materials (200 pounds @ 30 cents per pound) |
$60.00 |
|
Direct labor (3 hours @ $15.00 per hour) |
45.00 |
The actual results for the 380 units produced were as follows:
|
Raw materials cost for 76,300 pounds used |
$25,942 |
|
Direct labor cost for 1,200 hours worked |
16,200 |
Labor efficiency variance is
a. $0.
b. $900 U.
c. $300 U.
d. $900 F.