Krizun Industries makes heavy construction equipment. The standard for a particular crane calls for 14 direct labor-hours at $16 per direct labor-hour. During a recent period 1,000 cranes were made. The labor efficiency variance was $4,400 Unfavorable. How many actual direct labor-hours were worked

14,275 = actual hours

Explanation:

Giving the following information:

The standard for a particular crane calls for 14 direct labor-hours at $16 per direct labor-hour.

During a recent period, 1,000 cranes were made.

The labor efficiency variance was $4,400 Unfavorable.

To determine the actual hours worked, we need to use the direct labor efficiency variance formula:

Direct labor time (efficiency) variance = (Standard Quantity - Actual Quantity) * standard rate

-4,400 = (14*1,000 - actual hours) * 16

-4,400 = 224,000 - 16actual hours

228,400/16 = actual hours

14,275 = actual hours