A company had a $22,000 favorable direct labor efficiency variance during a time period when the standard rate per direct labor hour was $22 and the actual rate per direct labor hour was $21.If the standard direct labor hours allowed for production were 5,000,what is the amount of actual direct labor hours worked during this period?
A) 6,000 hours
B) 4,000 hours
C) 88,000 hours
D) 110,000 hours
E) 22,000 hours

Question

Quizplus · Accepted Answer

$22 (actual hours - 5,000 hours) = $22,000 F
$22 (1,000) = $22,000 F
The variance is favorable, therefore:
5,000 hours - actual hours = 1,000 hours
Actual hours = 4,000 hours

A Company Had a $22,000 Favorable Direct Labor Efficiency Variance