Asked by Alejandra Quiroz on Jun 15, 2024
Verified
Krizun Industries makes heavy construction equipment. The standard for a particular crane calls for 20 direct labor-hours at $16 per direct labor-hour. During a recent period1,300 cranes were made. The labor efficiency variance was $5,200 Unfavorable. How many actual direct labor-hours were worked?
A) 31,200 direct labor-hours
B) 26,000 direct labor-hours
C) 26,325 direct labor-hours
D) 24,700 direct labor-hours
Labor Efficiency Variance
The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate, indicating efficiency in labor usage.
Direct Labor-Hours
Entire duration of work by employees intricately involved in the manufacturing phase.
- Determine and explain variations in direct labor, covering both rate and efficiency differences.
Verified Answer
GL
Giselle LombardoJun 19, 2024
Final Answer :
C
Explanation :
Labor efficiency variance = (Standard hours for actual output - Actual hours worked) x standard labor rate.
Given:
Standard hours per unit = 20 hours
Standard labor rate = $16 per hour
Total output = 1,300 units
Labor efficiency variance = $5,200 unfavorable
Let Actual hours worked be X
$5,200 = (20 x 1,300 - X) x $16
$5,200 = (26,000 - X) x $16
$5,200/$16 = 325 = 26,000 - X
X = 26,000 - 325
X = 25,675 hours
Therefore, the actual direct labor-hours worked were 26,325 hours (Option C)
Given:
Standard hours per unit = 20 hours
Standard labor rate = $16 per hour
Total output = 1,300 units
Labor efficiency variance = $5,200 unfavorable
Let Actual hours worked be X
$5,200 = (20 x 1,300 - X) x $16
$5,200 = (26,000 - X) x $16
$5,200/$16 = 325 = 26,000 - X
X = 26,000 - 325
X = 25,675 hours
Therefore, the actual direct labor-hours worked were 26,325 hours (Option C)
Learning Objectives
- Determine and explain variations in direct labor, covering both rate and efficiency differences.
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