What is labor efficiency variance


Discover motor co. 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 hrs at a standard cost of $9.50 per hour. During the month of may, toothpick motor production uses 5900 DLH at a total DLC of $54,575. This resulted in production of 4800 toothpick motors for may. What is labor efficiency variance for the month of may?

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Accounting Basics: What is labor efficiency variance
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