Question

Rickett Corporation had a favorable direct-labor efficiency variance of $6,000 for the period just ended. The actual wage rate was $0.50 more than the standard rate of $12.00. If the company's standard hours allowed for actual production totaled 9,500, how many hours did the firm actually work

Answer 1

Actual Quantity= 9,000 hours

Step-by-step explanation:

Giving the following information:

Direct-labor efficiency variance= $6,000 favorable

Standard rate= $12.00.

Standard quantity= 9,500

To calculate the actual hours worked, we need to use the following formula.

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

6,000 = (9,500 - Actual Quantity)*12

6,000= 114,000 - 12Actual Quantity

12Actual Quantity = 108,000

Actual Quantity= 9,000 hours