Question

At Franklis Incorporated, during the month of January, the direct labor rate variance was $3,000 unfavorable, and the direct labor efficiency variance was $5,000 favorable. Actual direct labor costs during January were $100,000. What was the standard direct labor applied to production at Franklis during the month of January?

Answer 1

Answer:

50

Step-by-step explanation:

Direct labour rate variance is $3,000

Direct labour efficiency variance is $5,000

Actual direct labour costs is $100,000

Therefore the standard direct labour production during the month of January can be calculated as follows

= 100,000/5,000-3,000

= 100,000/2,000

= 50