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Question 1 - A chemical manufacturer produces a product by boiling a mixture of a chemical compound in a solution. It takes one worker 35 minutes to process on batch of the product. Employees work an 8 hour day, which includes 1 hour for rest breaks and clean up.

What is the standard labor time to produce one batch of the product?

45 mins

35 mins

40 mins

30 mins

Question 2 - Standard labor hours per unit of output 8.3 hrs

Standard labor rate $12.10 per hour

Actual hours worked = 6100 hours

Acutal total labor cost = $71370

Actual output = 900 units

What is the labor efficiency variance for the month?

$19,017 unfavorable

$16029 favorable

$16577 favorable

$19017 favorable

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