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Krizum Industries Makes Heavy Construction Equipment

Question 31

Multiple Choice

Krizum Industries makes heavy construction equipment. The standard for a particular crane calls for 24 direct labor-hours at $16 per direct labor-hour. During a recent period 850 cranes were made. The labor rate variance was zero and the labor efficiency variance was $8,800 unfavorable. How many actual direct labor-hours were worked?


A) 19,850
B) 20,400
C) 20,950
D) 35,200

Correct Answer:

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