Solving for Unknowns
Misterio Company uses a standard costing system. During the pastquarter, the following variances were computed:
| Variable overhead efficiency variance | $ 24,000 U |
| Direct labor efficiency variance | 120,000 U |
| Direct labor rate variance | 10,400 U |
Misterio applies variable overhead using a standard rate of $2per direct labor hour allowed. Two direct labor hours are allowedper unit produced. (Only one type of product is manufactured.)During the quarter, Misterio used 30 percent more direct laborhours than should have been used.
Required:
1. What were the actual direct labor hoursworked?
hours
What are the total hours allowed?
hours
2. What is the standard hourly rate for directlabor?
$ per hour
What is the actual hourly rate? Round your answer to the nearestcent.
$ per hour
3. How many actual units were produced?
units
