Answer:
1. 22,464 hours
2. 20,800 hours
3. $71,884.80 Favorable
4. $31,948.80 Unfavorable
Explanation:
Given that
Standard hours per unit = 3.20
Number of finished units = 6,500
Standard wage rate per hour = $19.20
Total direct labor payroll = $359,424
Actual wage rate per hour = $16
1. The computation of direct labor hours worked is shown below:-
Direct labor hours worked = Total labor cost ÷ Actual wage rate
= $359,424 ÷ 16
= 22,464 hours
2. The computation of total standard direct labor hours is here below:-
Total standard direct labor hours = Standard hours per unit × Actual units produced
= 3.20 × 6,500
= 20,800 hours
3. The calculation of direct labor rate variance is shown below:-
Direct labor rate variance = Actual hour × (Standard rate - Actual rate)
= 22,464 × ($19.2 - $16)
= 22,464 × $3.2
= $71,884.80 Favorable
4. The calculation of direct labor efficiency variance is shown below:-
Direct labor efficiency variance = Standard Rate × (Standard hour - Actual hours)
= $19.20 × (20,800 - 22,464)
= $19.20 × -$1,664
= $31,948.80 Unfavorable
