13 Krizum Industries makes heavy construction equipment The

13. Krizum Industries makes heavy construction equipment. The standard for a particular crane calls for 22 direct labor-hours at $16 per direct labor-hour. During a recent period 1,400 cranes were made. The labor rate variance was zero and the labor efficiency variance was $5,200 unfavorable. How many actual direct labor-hours were worked? O 36,000 O 30,800 O 31125 O 29,400

Solution

Standard cost 22 direct labor hours at $16 per direct labor hour Actual output 1,400 cranes labor rate variance 0 labor efficiency variance 5,200 U labor efficiency variance (Actual hours - standard hrs allowed)*standard rate (x    - 1400*22)*16 = 5200 16x   - 492800= 5200 x   = (5200+492800)/16 31125 Answer 31,125