In: Accounting
Exercise D6-16 Workers at Bonita News were paid a total of $25,680 during the month of July. The company’s standard wage rate was $6 per hour, and the direct labor rate variance for the month was $1,092 Unfavorable. How many direct labor hours were worked during July? Direct labor hours
Direct Labor hours 4,098 hours
Working:
Direct Labor rate variance | = | (Standard rate-Actual rate)*Actual labor hours | |||
or, | |||||
Direct Labor rate variance | = | (Standard rate*Actual labor hours)-(Actual rate*Actual labor hours) | |||
or, | |||||
Direct Labor rate variance | = | (Standard rate*Actual labor hours)-(Actual labor costs) | |||
or, | |||||
$ 1,092 | Unfavorable | = | (Standard rate*Actual labor hours)-25680 | ||
$ 24,588 | = | Standard rate*Actual labor hours | |||
or, | |||||
$ 24,588 | = | $ 6 *Actual labor hours | |||
or, | |||||
Actual labor hours | = | 4,098 | |||