City Outfitters incurred an unfavorable labor efficiency variance of $301 in their factory while making a new style of shirt. The standard rate for an hour of labor is $10.75 and 385 hours were worked to make 595 shirts. Labor costs were $4,196.50. What is the amount of standard hours for this level of activity? a. 385 hours b. 357 hours c. 384.2 hours d. 413 hours
Added by Jacob K.
Step 1
To find the actual labor rate per hour, we need to divide the total labor costs by the total hours worked. So, $4,196.50 / 385 hours = $10.90 per hour. Show more…
Show all steps
Your feedback will help us improve your experience
Rahul Mahato and 73 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
9. Saffron Enterprise had a favourable direct labour efficiency variance of $5,000 for the period just ended. The actual wage rate was $0.50 more than the standard rate of $10.00. If the company’s standard hours allowed for actual production totalled 9,000 hours, how many hours did the firm actually work? Multiple Choice a)8,500 hours b)9,500 hours c)9,525 hours d)some other answer e)8,475 hours
Rahul M.
The standard cost for 5,000 units of a product and 10,000 direct labor hours is as follows: Standard cost description Standard quantity per unit Standard rate Standard cost per unit Direct materials 4 pounds @ $3 $12 Direct labor 2 hours @ $10 $20 Variable overhead 2 hours @ $8 $16 Fixed overhead $25,000 per 5,000 units $5 Total standard cost per unit $53 The actual direct labor hours used to produce 4,950 units was 9,700 hours. What is the direct labor efficiency variance? A. $3,000 unfavorable. B. $3,000 favorable. C. $2,000 unfavorable. D. $2,000 favorable.
Akash M.
Mechanic pay is $14.00 per hour for regular time and time-and-a-half for overtime. The weekly wage function is W(h) = 14h, 0 < h <= 40; 21(h - 40) + 560, h > 40 where h is the number of hours worked in a week. (a) Evaluate W(32), W(40), W(45), and W(52). W(32) = 448 W(40) = 560 W(45) = W(52) = (b) The company decreases the regular work week to 38 hours. What is the new weekly wage function? (c) The company increases the mechanic's pay to $16.00 per hour. What is the new weekly wage function? Use a regular work week of 40 hours.
James K.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD