Question

The standards for direct labour for a product are 2.5 hours at $8 per hour. Last month, 9,000 units of the product were m and the labour efficiency variance was $8,000 favourable. What was the actual number of hours worked during the past period?

a. 21.500 hours
b. 22.500 hours
c. 23,500 hours
d. 20.500 hours

Answer 1

The actual number of hours worked during the past period is 22,500 hours.

Step-by-step explanation:

To find the actual number of hours worked during the past period, we can use the labor efficiency variance formula:

Actual Hours - Standard Hours = Labor Efficiency Variance

Given that the labor efficiency variance was $8,000 favorable, we can set up the equation:

Actual Hours - (2.5 hours per unit x 9,000 units) = $8,000

Simplifying the equation, we have:

Actual Hours - 22,500 hours = $8,000

Therefore, the actual number of hours worked during the past period is:

Actual Hours = 22,500 hours + $8,000

Actual Hours = 30,500 hours = b. 22,500 hours.