High School

R Corp has the following direct labor (DL) standards:

- DL hours per unit: 1.75
- DL cost per hour: $28.00

R Corp used 7,120 direct labor hours to produce 4,000 units.

Is the DL efficiency variance favorable or unfavorable?

A. Favorable
B. Unfavorable

Answer :

The DL efficiency variance can be determined by comparing the actual DLHRS used to produce the given number of units with the standard DLHRS allowed for the same number of units.

DLHRS/UNIT: 1.75

DL$/HR: $28.00

Actual DLHRS used: 7,120

Number of units produced : 4,000

Standard DLHRS allowed = DLHRS/UNIT * Number of units produced

= 1.75 * 4,000

= 7,000

DL efficiency variance = Standard DLHRS allowed - Actual DLHRS used

= 7,000 - 7,120

= -120

A favorable DL efficiency variance occurs when fewer DLHRS are used than the standard allows. In this case, the actual DLHRS used (7,120) exceeds the DLHRS allowed (7,000). Therefore, the DL efficiency variance is unfavorable (unfavorable = "unfav").

The DL efficiency variance is unfavorable (unfav) because the actual DLHRS used (7,120) exceeds the standard DLHRS allowed (7,000) by 120 hours.

Learn more about DLHRS ,visit;

https://brainly.com/question/24553900

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