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Can someone help me with this question?
The standard direct labor cost to produce one pound of output for a company is presented below. Related data regarding the planned and actual production activities for the current month for the company are also given below.
DLH = Direct Labor Hours
Direct Labor Standard:
0.4 DLH @ $12.00 per DLH = $4.80
Planned production
15,000 pounds
Actual production
15,500 pounds
Actual direct labor costs (6,250 DLH)
$75,250
The answer is $600 unfavorable. The formula to solve this would be the difference between Actual Hour and Standard Hours x Standard Rate. I get that the standard rate is $12/hour. The actual hour is given as 6250. How come the Standard hours arn’t 6000? 15,000 pounds planned x .4 = should be 6000.
I did it. You can too!Study Material:
GLEIM
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