The Fischer Corporation uses a standard costing system.The following data have been assembled for December: The standard hours allowed for December's production is:

Question

The Fischer Corporation uses a standard costing system.The following data have been assembled for December:  The standard hours allowed for December's production is:

Quizplus · Accepted Answer

Labor efficiency variance = (AH - SH)× SR
$1, 800 U = (5, 800 hour - SH)× $9 per hour
$1, 800 = (5, 800 hour - SH)× $9 per hour
$1, 800 = $52, 200 - (SH × $9 per hour)
SH × $9 per hour = $52, 200 - $1, 800
SH × $9 per hour = $50, 400
SH = $50, 400 ÷ $9 per hour
SH = 5, 600 hours

The Fischer Corporation Uses a Standard Costing System