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Goalby Co’s biggest customer has recently placed a one-off, urgent order for 10,000 units. Each unit requires 4 hours of labour budgeted at $25 per hour. Goalby Co’s board decided to pay labour a premium of 20% for work done on this order, in order to ensure that it meets the customer’s deadline. 39,200 labour hours were spent on the order, costing $1,254,400.
What is the labour operational efficiency variance for the order?
