Question:
MajorNet Systems has budgeted three hours of direct labor per connector, at a standard cost of $17 per hour. During August, technicians actually worked 189 hours completing 84 connectors. All 84 connectors actually produced were sold. MajorNet paid the technicians $17.80 per hour.
1. What is MajorNet's direct labor price variance for August?
a. $67.20 U
b. $151.20 U
c. $201.60 U
d. $919.80 U
2. What is MajorNet's direct labor efficiency variance for August?
a. $919.80 F
b. $1,071.00 F
c. $1,121.40 F
d. $3,364.20 F