Majenta Company uses a standard costing system.The following information pertains to direct labor costs for February: ?

-How many actual labor hours were worked during February for Majenta Company?
A) 6,300 hours
B) 9,000 hours
C) 4,200 hours
D) 7,500 hours

Question

Majenta Company uses a standard costing system.The following information pertains to direct labor costs for February: ?
 
-How many actual labor hours were worked during February for Majenta Company?
A) 6,300 hours 
B) 9,000 hours 
C) 4,200 hours 
D) 7,500 hours

Quizplus · Accepted Answer

Labor rate variance = (Actual rate - Standard rate) × Actual hours
Actual hours = Labor rate variance / (Actual rate - Standard rate) = $15,000 / ($10.00 - $12.00)
= 7,500 hours

Majenta Company Uses a Standard Costing System