Neptune Electronics produces tablet cases. It takes 3 hours of direct labor to produce a single tablet case. The company's standard labor cost is $15 per hour. During July, Neptune produced 7,200 units and used 22,500 hours of direct labor at a total cost of $333,000. What is Neptune Electronics' labor efficiency variance for July? a. $9,000 favorable. b. $9,000 unfavorable. c. $11,250 unfavorable. d. $7,500 favorable. e. $13,500 unfavorable.

Neptune Electronics produces tablet cases. It takes 3 hours of direct labor to produce a single tablet case. The company's standard labor cost is $15 per hour. During July, Neptune produced 7,200 units and used 22,500 hours of direct labor at a total cost of $333,000. What is Neptune Electronics' labor efficiency variance for July? a. $9,000 favorable. b. $9,000 unfavorable. c. $11,250 unfavorable. d. $7,500 favorable. e. $13,500 unfavorable.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 8EB: Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450...

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