Managerial Accounting

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Moderate

Efficiency Variance for air filters

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Harcum Corp manufactures air filters for sale to other companies. The standard number of hours required to manufacture a shipment of air filters is 1000 hours. The standard wage rate is \$22 per hour. The actual hours incurred were 995 and the actual labor wages incurred \$21,989.50.

What is the efficiency variance?

A

100 Unfavorable

B

$10 Favorable

C

$10 Unfavorable

D

$110 Favorable