Answered

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Porter Manufacturing Company uses a standard cost accounting system. In 2011, the company produced 20,000 units. Each unit took several pounds of direct materials and 3 standard hours of direct labor at a standard hourly rate of $10. Normal capacity was 50,000 direct labor hours. During the year, 52,472 pounds of raw materials were purchased at $1.5 per pound. All materials purchased were used during the year. If the direct labor quantity variance was $5,400 unfavorable, what were the direct labor hours actually worked?

Sagot :

IF the direct labor quantity variance was $5,400 unfavorable, then the direct labor hours actually worked would be 60,540 hours.



What is direct labor quantity variance?

It measures the cost of the difference between the expected labor rate and the actual labor rate. If the variance demonstrates that actual labor were higher than expected labor rates, then the variance will be considered unfavorable.

How to calculate the direct labor hours actually worked?
Labor quantity variance = 5,400 Unfavorable

(standard hour - actual hour) * standard rate = -5,400

(20,000 * 3 - actual hour) * 10 = -5,400

60,000 - actual hour = -5,400 / 10

60,000 - actual hour = -540

Actual Hour = 60,000 + 540

= 60,540

Therefore, the direct labor hours actually worked would be 60,540 hours.

Learn more about direct labor quantity variance https://brainly.com/question/28013719

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