Jackson Company uses a standard cost system. The following information pertains to direct labor for product B for the month of October: Standard hours allowed for actual production 2,550 Actual rate paid per hour $ 8.50 Standard rate per hour $ 8.10 Labor efficiency variance $ 1,215 U What were the actual hours worked for the month of October?

Question

Jax Maldonado

Business

19 October, 15:27

Jackson Company uses a standard cost system. The following information pertains to direct labor for product B for the month of October: Standard hours allowed for actual production 2,550 Actual rate paid per hour $ 8.50 Standard rate per hour $ 8.10 Labor efficiency variance $ 1,215 U What were the actual hours worked for the month of October?

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Robinson · Answer 1

Answer: 2400 hours

Explanation: Labor efficiency variance can be computed using following formula : -

Labor efficiency variance = standard rate (standard hours - actual hours)

so, putting the values into equation we get : -

-$1215 = $8.10 (2,550 hours - actual hours)

-$150 = 2,550 hours - actual hours

actual hours = 2400 hours