Ask Question
5 October, 02:38

Krizun Industries makes heavy construction equipment. The standard for a particular crane calls for 20 direct labor-hours at $24 per direct labor-hour. During a recent period 875 cranes were made. The labor efficiency variance was $1,200 Unfavorable. How many actual direct labor-hours were worked? Group of answer choicesa. 28,850

b. 23,750

c. 24,090

d. 22,500

+2
Answers (1)
  1. 5 October, 04:08
    0
    Actual Hours = 17450

    Explanation:

    Krizun Industries

    The labor efficiency variance = (Standard Hours allowed for expected Output * standard labor Rate) - (Standard Hours allowed for Actual Output * standard labor Rate)

    Labor Efficiency Variance = (SH * SR) - (AH*SR)

    Labor Efficiency Variance = (20 * 875 * 24) - (AH * 24)

    $ 1200 - 420000 = - (AH*24)

    -418800/24 = - (AH)

    Actual Hours = 17450

    Actual Hours per unit = 17450/875 = 19.94
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Krizun Industries makes heavy construction equipment. The standard for a particular crane calls for 20 direct labor-hours at $24 per direct ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers