Answered

Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

Dreary Credit Agency processes credit applications. The labor standard at Dreary is $15 per hour, 8 hours per day (per employee). During the last pay period (10 business days), Dreary's 25 credit agents worked 1,920 hours and processed 2,500 applications. The total labor cost for the agents during this period was $29,184. What was Dreary's direct labor efficiency variance for this last pay period

Sagot :

ayokenny2001

Answer:

See below

Explanation:

Given the above, we will calculate first the standard hours allowed for actual work using the formula below

Standard hours allowed for actual work

= Total number of applications × Number of standard

= 2.500 × 8 hours × 10

= 2,000 hours

Therefore, the labor efficiency variance

= (Actual hours worked - Standard hours allowed for actual work) × Standard rate

= (1,920 - 2,000 ) × $15

= -$1,200

The labor efficiency variance is $1,200 favorable

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.