Question
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 = $48,960 favorable; direct labor efficiency variance = $68,000 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 20% more direct labor hours than the standard allowed for the output achieved.
What were the total actual direct hours worked (AQ), rounded to the nearest whole number?
Multiple Choice
9,792.
1,360.
6,800.
5,440.
8,160.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started