Majer Corporation makes a product with the following standard costs: Standard Quantity or HoursStandard Price or RateStandard Cost Per UnitDirect materials 6.4ounces$3.00per ounce$19.20Direct labor 0.4hours$13.00per hour$5.20Variable overhead 0.4hours$5.00per hour$2.00?The company reported the following results concerning this product in February. Originally budgeted output 4,800unitsActual output 4,900unitsRaw materials used in production 30,230ouncesActual direct labor-hours 1,910hoursPurchases of raw materials 32,600ouncesActual price of raw materials$2.90per ounceActual direct labor rate$12.40per hourActual variable overhead rate$4.90per hour?The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is
computed when the materials are purchased.?The labor efficiency variance for February is:
A. $620 U
B. $650 F
C. $650 U
D. $620 F
Answer: B
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