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6 September, 04:21

7) 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

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  1. 6 September, 04:37
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    Number of actual hours worked = 17,550 hours

    Explanation:

    Efficiency variance in labour hours = labour efficiency variance/standard labour cost / hour

    The standard labour cost per hour = $24

    = 1,200/24 = 50 hours

    Labour variance (in hours) = Actual labour hours - Standard hours for the actual units

    The standard labour hours allowed for the actual 875 cranes made:

    = 20 * 875 = 17,500 hours

    let the actual hours be " y "

    50 = y - 17500

    y = 50 + 17500

    y = 17,550 hours

    Number of actual hours worked = 17,550 hours
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