Simms Corp. had a favorable direct-labor efficiency variance of $6,000 for the period just ended. The actual wage rate was $0.50 more than the standard rate of $12.00. If the company's standard labor hours allowed for actual production totaled 9,500, how many actual labor hours did the firm work

9,000 = actual hours

Explanation:

Giving the following information:

Simms Corp. had a favorable direct-labor efficiency variance of $6,000 for the period just ended.

The standard rate is $12.

The company's standard labor hours allowed for actual production totaled 9,500, how many actual labor hours did the firm work.

To calculate the actual hours, we need to use the direct labor efficiency variance formula:

Direct labor time (efficiency) variance = (Standard Quantity - Actual Quantity) * standard rate

6,000 = (9,500 - actual hours) * 12

6,000 = 114,000 - 12*actual hours

9,000 = actual hours