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18 October, 08:27

The standards for direct labor for a product are 2.5 hours at $8 per hour. Last month, 9,000 units of the product were made and the labor efficiency variance was $8,000 F. The actual number of hours worked during the past period was:

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  1. 18 October, 11:53
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    21,500

    Explanation:

    Given that,

    Labor efficiency variance = $8,000 F

    Standard Rate = $8 per hour

    Standards for direct labor for a product = 2.5 hours

    Labor efficiency variance = (Standard Hour for actual output - Actual Hour) * Standard Rate

    $8,000 = [ (9,000 * 2.5) - Actual Hour] * $8 per hour

    1,000 = 22,500 - Actual Hour

    Actual hour = 22,500 - 1,000

    = 21,500

    Therefore, the actual number of hours worked during the past period was 21,500.
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