Question

Jackson Company uses a standard cost system. The following information pertains to direct labor for product B for the month of October: Standard hours allowed for actual production 2,550 Actual rate paid per hour $ 8.50 Standard rate per hour $ 8.10 Labor efficiency variance $ 1,215 U What were the actual hours worked for the month of October?

Answer 1

Answer: 2400 hours

Step-by-step explanation: Labor efficiency variance can be computed using following formula :-

Labor efficiency variance = standard rate (standard hours - actual hours)

so, putting the values into equation we get :-

-$1215 = $8.10 ( 2,550 hours - actual hours)

-$150 = 2,550 hours - actual hours

actual hours = 2400 hours