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Refer to the exhibit.
The budget for ORG for the month of September contained the following data:
During the month the actual number of units produced was 1,550. The management accounts showed a direct labour rate variance of $200 adverse and direct labour efficiency variance of $150 adverse.
The actual direct labour hours in the month was:
Suggested Answer: C
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3 comments · newest first
BO
Boris
3 days ago
This question seems similar to one we did in class about variances. I think I need to use the efficiency variance formula to find the actual hours.
CA
Cathrine
8 days ago
I think the direct labour rate variance means we paid more per hour than expected, but I can't recall how that affects the total hours.
SH
Sherill
13 days ago
I remember we practiced calculating direct labour hours using variances, but I'm not sure how to apply it here.