Question 1 - A chemical manufacturer produces a product by boiling a mixture of a chemical compound in a solution. It takes one worker 35 minutes to process on batch of the product. Employees work an 8 hour day, which includes 1 hour for rest breaks and clean up.
What is the standard labor time to produce one batch of the product?
45 mins
35 mins
40 mins
30 mins
Question 2 - Standard labor hours per unit of output 8.3 hrs
Standard labor rate $12.10 per hour
Actual hours worked = 6100 hours
Acutal total labor cost = $71370
Actual output = 900 units
What is the labor efficiency variance for the month?
$19,017 unfavorable
$16029 favorable
$16577 favorable
$19017 favorable