Question 2 0.7 points Save Answer Porter Manufacturing Company uses a standard c

Question

Question 2 0.7 points Save Answer Porter Manufacturing Company uses a standard cost accounting system. In 2011, the company produced 25,000 units. Each unit took several pounds of direct materials and 2 standard hours of direct labor at a standard hourly rate of $12. Normal capacity was 50,000 direct labor hours. During the year, 51,872 pounds of raw materials were purchased at $1.7 per pound. All materials purchased were used during the year. If the direct labor quantity variance was $4,400 favorable, what were the direct labor hours actually worked?

Explanation / Answer

Labour quantity variance = (Standard quanitty-actual quantity)standard rate

4400 = (25000*2-X)12

4400 = 600000-12X

12X = 595600

X(actual hours worked) = 49633 Hours

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