Question

LLG Co. reports the following data for a recent period: Labor Efficiency Variance $6,000 Favorable Total Labor Cost Variance $12,000 Unfavorable Actual Wage Rate Paid $12 / Hour Standard Wage Rate $11.70 / Hour The actual hours worked during this period was:

Answer 1

Actual Quantity= 60,000 hours

Step-by-step explanation:

First, we need to calculate the direct labor rate variance and the standards direct labor hours:

Total Labor Cost Variance= efficiency variance + rate variance

-12,000 = 6,000 + rate variance

-18,000= rate variance

Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

-18,000= (11.7 - 12)*actual quantity

-18,000 = -0.3*actual quantity

60,000= actual quantity