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The following information pertains to direct labor costs for the month of February. This company uses a standard costing system. Standard direct labor price per

  1. The following information pertains to direct labor costs for the month of February. This company uses a standard costing system.

    Standard direct labor price per hour

    $15.00

    Actual direct labor price per hour

    $13.50

    Labor price variance

    $18,000 favorable

    Actual output

    1,000 units

    Standard quantity (per actual production)

    10,000 hours

    How many actual direct labor hours were worked during February for this company?

    (Hint: think about the direct labor price variance formula)

    a.

    2,000 hours

    b.

    12,000 hours

    c.

    10,000 hours

    d.

    1,200 hours

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