Question
Kansas Company uses a standard cost accounting system. In 2017, the company produced 28,500 units. Each unit took several pounds of direct materials and 1.6
Kansas Company uses a standard cost accounting system. In 2017, the company produced 28,500 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 49,600 direct labor hours. During the year, 130,500 pounds of raw materials were purchased at $0.95 per pound. All materials purchased were used during the year. If the labor quantity variance was $7,200 unfavorable, what were the actual direct labor hours worked? I tried figuring this out by dividing 7,200/12 to get 600 and then added that to 49600 to get 50200 but I am being marked incorrect.
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