A Company Had a $22,000 Favorable Direct Labor Efficiency Variance

question 36

Multiple Choice

A company had a $22,000 favorable direct labor efficiency variance during a time period when the standard rate per direct labor hour was $22 and the actual rate per direct labor hour was $21.If the standard direct labor hours allowed for production were 5,000,what is the amount of actual direct labor hours worked during this period?

• A) 6,000 hours
• B) 4,000 hours
• C) 88,000 hours
• D) 110,000 hours
• E) 22,000 hours

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