Question

Panther Auto Detailing reported the following results for the past week: Actual number of cars detailed 140 Actual direct labor hours used 420 Actual total direct labor cost $6,500 Budgeted number of cars to be detailed 350 Standard direct labor cost per hour $12.28 Standard direct labor per car 1.5 What is the company's direct labor efficiency variance? $2,579 favorable $3,251 favorable $3,251 unfavorable $2,579 unfavorable

          Panther Auto Detailing reported the following results for the past week:
Actual number of cars detailed
140
Actual direct labor hours used
420
Actual total direct labor cost
$6,500
Budgeted number of cars to be detailed
350
Standard direct labor cost per hour
$12.28
Standard direct labor per car
1.5
What is the company's direct labor efficiency variance?
$2,579 favorable
$3,251 favorable
$3,251 unfavorable
$2,579 unfavorable

Panther Auto Detailing reported the following results for the past week:
Actual number of cars detailed
140
Actual direct labor hours used
420
Actual total direct labor cost
6,500
Budgeted number of cars to be detailed
350
Standard direct labor cost per hour12.28
Standard direct labor per car
1.5
What is the company's direct labor efficiency variance?
2,579 favorable3,251 favorable
3,251 unfavorable2,579 unfavorable

Added by Ryan C.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Manasvee Singh

11/03/2022

Step 1

Standard direct labor hours = Budgeted number of cars * Standard direct labor per car Standard direct labor hours = 140 * 1.5 Standard direct labor hours = 210 Show more…

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Panther Auto Detailing reported the following results for the past week: able[[Actual number of cars detailed,140],[Actual direct labor hours used,420],[Actual total direct labor cost,$6,500 Panther Auto Detailing reported the following results for the past week Actual number of cars detailed Actual direct labor hours used Actual total direct labor cost 140 420 $6,500 Budgeted number of cars to be detailed 350 Standard direct labor cost per hour $12.28 Standard direct labor per car 1.5 What is the company's direct labor efficiency variance? O$2,579 favorable O$3,251 favorable O$3,251 unfavorable O$2,579 unfavorable