Answer: 26,325 hrs
Explanation:
We will use the Labor Efficiency Variance concept to calculate this question.
The formula for which is,
Labour Efficiency Variance = (Standard Direct Labour Hours allowed - Actual Direct Labour hours used) * Std Direct Labour Rate
where,
the Standard Direct Labour Hours allowed = Actual units produced * Standard Direct Labour Hours
Substituting figures that would be,
= 1300 x 20 = 26,000hrs
We have the Standard direct labor rate at $16
The Labor Efficiency Variance is 5,200 unfavourable meaning that it is negative = -5,200
Since we are solving for Actual Direct Labour hours used we will denote it, x
Substituting figures we have
-5200 = (26,000 - x) * 16
-5200 = 416,000 - 16x
16x = 416,000 + 5200
16x = 421,200
x = 26,325
The means that the Actual Direct Labour hours used was 26,325.
