Krizum Industries makes heavy construction equipment. The standard for a particu
ID: 2755311 • Letter: K
Question
Krizum Industries makes heavy construction equipment. The standard for a particular crane calls for 26 direct labor-hours at $16 per direct labor-hour. During a recent period 1,600 cranes were made. The labor rate variance was zero and the labor efficiency variance was $5,600 unfavorable. How many actual direct labor-hours were worked 47,200 41,600 41,950 40,000 Mldgley Corporation makes a product whose direct labor standards are 0.6 hours per unit and $26 per hour. In April the company produced 7,250 units using 3,850 direct labor-hours. The actual direct labor cost was $80,850. The labor efficiency variance for April is: $13,000 U $13,000 F $32,250 F $32,250 U Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 10,000 units and of Product B is 8,500 units. There are three activity cost pools, with total cost and total activity as follows: The activity-based costing cost per unit of Product A is closest to: $7.29 per units $11.28 per units $.79 per units $5.89 per unitsExplanation / Answer
1)
Standard direct labor hours = 26 hours * 1600 units = 41,600 hours.
Add: Labor efficiency variance(Unfavourable) = $5,600.
Labor hours varaince = $5,600/$16 = 350 hours.
Actual Labor hours = Standard labor hours + Labor hours variance = 41,600 + 350 = 41,950 hours.
Therefore, the correct answer is option C.
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