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dybincka [34]
3 years ago
10

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
Business
1 answer:
podryga [215]3 years ago
8 0

Answer:

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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