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.7 points Save Answer Porter Manufacturing Company uses a standard cost accounti

ID: 2588807 • Letter: #

Question

.7 points Save Answer Porter Manufacturing Company uses a standard cost accounting system. In 2011, the company produced 20,000 units. Each unit took several pounds of direct materials and 3 standard hours of direct labor at a standard hourly rate of $11. Normal capacity was 50,000 direct labor hours. During the year, 55,684 pounds of raw materials were purchased at $1.2 per pound. All materials purchased were used during the year. If the direct labor quantity variance was $4,000 unfavorable, what were the direct labor hours actually worked?

Explanation / Answer

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

-4000 = (20000*3-X)11

-4000 = 660000-11X

11X = 664000

X(actual hours) = 60364 hours