Use the Following Information to Answer the Next Two Questions

Use the following information to answer the next two questions. At the beginning of the current financial year, the BeachShack Hotel established the standard that it should take 45 minutes to process 1 container of laundry. The Hotel also budgeted that laundry labour should be paid $18 per hour.
At the end of May, the laundry department's performance report indicated that 160 hours had been worked in processing 200 containers of laundry. Laundry staff wages for May were $3,200.
-What is the Beach Shack hotel's laundry labour efficiency variance for May?

A) $90 (unfavourable) .
B) $90 (favourable) .
C) $180 (unfavourable) .
D) $180 (favourable) .
E) None of the above.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free