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Sonbull
20 days ago
8

7) 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
Business
1 answer:
Mariulka [3.1K]20 days ago
7 0

Answer:

Total hours worked = 17,550 hours

Explanation:

Labour hours efficiency variance = labour efficiency variance/standard labour cost per hour

The hourly standard labour cost = $24

= 1,200/24= 50 hours

Labour variance (in hours) = Actual labour hours - Standard hours for actual units produced

The standard labour hours allowed for the production of 875 cranes is:

= 20 × 875 = 17,500 hours

Let the actual hours be "y"

50 = y - 17500

y = 50 + 17500

y= 17,550 hours

Total hours worked = 17,550 hours

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