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22 July, 08:09

Information for Nighttime Company's direct labor cost for February is as follows: Actual direct labor hours 70,000 Total direct labor payroll $ 497,000 Efficiency variance $ 7,260 F Rate variance $ 35,000 U What were the standard direct labor hours for February

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  1. 22 July, 08:38
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    71,100

    Explanation:

    The calculation of standard direct labor hours is shown below:-

    Labor rate variance = (Actual rate - Standard rate) * Actual hours worked

    $35,000 = ($497,000 : 70,000 - Standard rate) * 70,000

    (7.1 - Standard rate) = $0.5

    = $6.6 per hour

    = Labor variance efficiency = (70,000 - Standard hour) * $6.6 per hour

    = - $7,260 = (70,000 - Standard hour) * $6.6 per hour

    Standard hours = $70,000 + 1,100

    = 71,100
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