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Prokp Co.'s records for April disclosed the following data relating to direct labor: Actual labor cost (payroll) for April$35,000 Labor rate variance$5,000favorable Labor efficiency variance$3,900unfavorable Actual direct labor hours worked (AQ) 2,500 Prokp's total standard direct labor hours allowed (SQ) for units produced in April (to nearest whole number) were: Multiple Choice

1 Answer

5 votes

Answer:

2,256 hours

Step-by-step explanation:

The computation of the total standard direct labor hours allowed (SQ) for units produced is shown below;

As we know that

Labor rate variance = (Actual hours × Actual rate) - (Actual hours × Standard rate)

($5,000) = $35,000 - (2,500 × Standard rate)

2,500 × Standard rate = $40,000

Standard rate = $16

Now

Labor efficiency variance = (Actual hours × Standard rate) - (Standard hours × Standard rate)

$3,900 = (2,500 × $16) - (Standard hours × $16)

Standard hours × $16 = 36,100

Standard hours = 2,256.25

= 2,256 hours

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