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Penny Company manufactures only one product and uses a standard cost system. The following information is from Penny's records for May: Direct labor rate Variance:
Penny Company manufactures only one product and uses a standard cost system. The following information is from Penny's records for May:
Direct labor rate Variance: $15,000 favorable
Direct labor time variance: $25,000 unfavorable
Standard hours per unit produce: 2.5 hours
Standard rate per hour $25
During May, the company used 12.5% more hours than the standard allowed.
- What were the total standard hours allowed for the units manufactured during the month?
- What were the actual hours worked?
- How many actual units were produced during May?
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