What were the total actual direct hours worked aq

What were the total actual direct hours worked (AQ)?
1,760.
7,040.
8,800.
10,560.
13,200.
1. Excess hours worked, based on units produced = $88,000U variance (given)/$50 per hour (the standard wage rate) (given) = 1,760 hours.
2. This excess represents 20% of standard hours allowed (given); therefore, standard hours allowed = 1,760 hours/0.20 = 8,800 hours.
3. Therefore, actual hours = 8,800 standard hours + 1,760 excess hours = 10,560 hours
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 14-03 Develop a general framework for
subdividing the master budget variance into component variances.
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9/28/21, 10:57 PM Assignment Print View
90/158
176.
Award: 10.00 points
177.
Award: 10.00 points
Sheldon Company manufactures only one product and uses a standard cost system. During the past month, manufacturing operations for the company had the
following variances: direct labor rate variance = $30,000 favorable; direct labor efficiency variance = $50,000 unfavorable. Sheldon allows 5 standard direct labor
hours per unit produced, and its standard direct labor hourly pay rate is $50. During the month, the company used 25% more direct labor hours than the standard
allowed for the output achieved.
What were the total actual direct hours worked (AQ)?
1,000.
3,000.
4,000.
5,000.
6,000.
1. Excess hours worked, based on units produced = $50,000U variance (given)/$50.00 per hour (the standard wage rate) (given) = 1,000 hours.
2. This excess represents 25% of standard hours allowed (given); therefore, standard hours allowed = 1,000 hours/0.25 = 4,000 hours.
3. Therefore, actual hours = 4,000 standard hours + 1,000 excess hours = 5,000 hours
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 14-03 Develop a general framework for
subdividing the master budget variance into component variances.
Sheldon Company manufactures only one product and uses a standard cost system. During the past month, manufacturing operations for the company had the
following variances: direct labor rate variance = $27,000 favorable; direct labor efficiency variance = $55,000 unfavorable. Sheldon allows 4 standard direct labor
hours per unit produced, and its standard direct labor hourly pay rate is $50. During the month, the company used 20% more direct labor hours than the standard
allowed.
What was the actual hourly rate (AP) for direct labor?
$25.
$29.
$46.
$50.
$54.
1. Direct labor rate variance = $27,000F (given)
2. Labor rate variance/hour = total rate variance/actual hours worked = [(AP − SP) × AQ]/AQ = $27,000F/6,600 actual hours = $4 per hour F variance.
3. SP = $50 per hour (given).
4. Therefore, actual wage rate per hour (AP) = standard wage rate per hour (SP) − favorable rate variance per hour = $50 per hour − $4 per hour = $46 per hour.
Note: if the rate variance had been unfavorable (U), then the amount of that variance, per hour, would have been added to—not subtracted from—the $50 per
hour figure.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 14-03 Develop a general framework for
subdividing the master budget variance into component variances.