Question

A manufacturer uses a standard cost system with overhead applied based upon direct labor hours. The manufacturing budget for the production of 5,000 units for the month of May included the following information: Direct labor 10,000 hours at $15 per hour $150,000 Variable overhead 30,000 Fixed overhead 80,000 During May, 6,000 units were produced and the fixed overhead budget variance was $2,000 favorable. Fixed overhead during May was

Answer 1

Your answer is given below:

Step-by-step explanation:

Labor efficiency variance = (Standard hour-actual hour)Standard rate

-1500 = (10000*15-X15)

15X = 151500

x(actual hour) = 10100 Hour