Reddit Co. manufactures heavy construction equipment. The standard for a particular excavator calls for 25 direct labor hours at $20 per direct labor hour. During a recent period, 500 excavators were made. The labor rate variance was zero, and the labor efficiency variance was $10,000 unfavorable. How many actual direct labor hours were worked?
Reddit Co. manufactures heavy construction equipment. The standard for a particular excavator calls for 25 direct labor hours at $20 per direct labor hour. During a recent period, 500 excavators were made. The labor rate variance was zero, and the labor efficiency variance was $10,000 unfavorable. How many actual direct labor hours were worked?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 1CMA: MinnOil performs oil changes and other minor maintenance services on cars and trucks. The company...
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Reddit Co. manufactures heavy construction equipment. The standard for a particular excavator calls for 25 direct labor hours at $20 per direct labor hour. During a recent period, 500 excavators were made. The labor rate variance was zero, and the labor efficiency variance was $10,000 unfavorable. How many actual direct labor hours were worked?
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