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Natalkuz Industries has prepared a budget for August, with production of 125,000 units of its product. Each unit requires 1.5 hours of direct labour at
Natalkuz Industries has prepared a budget for August, with production of 125,000 units of its product. Each unit requires 1.5 hours of direct labour at a cost of $38.00 per hour. Actual production for the month was 118,750 units, with an actual labour rate of $39.50 per hour. Natalkuz reported an unfavourable direct labour rate variance of $267,000 and an unfavourable direct labour flexible budget variance of $262,250 for the month of August. How many hours were actually used during the month, if Natalkuz uses a standard costing system?
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