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Sheldon Company manufactures only one product and uses a standard cost system. During the past month, manufacturing operations for the company had the following variances:
Sheldon Company manufactures only one product and uses a standard cost system. During the past month, manufacturing operations for the company had the following variances: direct labor rate variance =$30,000 favorable; direct labor efficiency variance =$50,000 unfavorable. Sheldon allows 5 standard direct labor hours per unit produced, and its standard direct labor hourly pay rate is $50. During the month, the company used 25% more direct labor hours than the standard allowed for the output achieved. What were the total actual direct hours worked (AQ)? Multiple Choice 1,000 . 3,000 3,000 . 4,000 . 5,000 . 6,000
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