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