Krizun Industries makes heavy construction equipment. The standard for a particular crane calls for 20 direct labor-hours at $24 per direct labor-hour. During a recent period 875 cranes were made. The labor efficiency variance was $1,200 Unfavorable. How many actual direct labor-hours were worked? Group of answer choicesa. 28,850

b. 23,750

c. 24,090

d. 22,500

Actual Hours = 17450

Explanation:

Krizun Industries

The labor efficiency variance = (Standard Hours allowed for expected Output * standard labor Rate) - (Standard Hours allowed for Actual Output * standard labor Rate)

Labor Efficiency Variance = (SH * SR) - (AH*SR)

Labor Efficiency Variance = (20 * 875 * 24) - (AH * 24)

$ 1200 - 420000 = - (AH*24)

-418800/24 = - (AH)

Actual Hours = 17450

Actual Hours per unit = 17450/875 = 19.94