Swan Company has a direct labor standard of 15 hours per unit of output.Each employee has a standard wage rate of $14 per hour.During March,employees worked 13,100 hours.The direct labor rate variance was $9,170 favorable,and the direct labor efficiency variance was $15,400 unfavorable.How many units were produced?
A)873 units
B)655 units
C)1,100 units
D)800 units

Question

Quizplus · Accepted Answer

The direct labor efficiency variance is calculated as (Actual hours - Standard hours) x Standard rate. Given the variance is $15,400 unfavorable, we can set up the equation: (13,100 - 15x) x $14 = $15,400, where x is the number of units produced. Solving for x gives 800 units.

Swan Company Has a Direct Labor Standard of 15 Hours