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Compute actual hours worked, actual purchase prices

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Standard direct-labor rate $14.00
Actual direct-labor rate $12.20
Standard direct-labor hours 12,000
Direct-labor quantity varianceâ?"unfavorable $9,800
Standard unit price of materials $4.50
Actual quantity purchased and used 1,800
Standard quantity allowed for actual production 1,650
Materials purchase price varianceâ?"favorable $198

1. Compute the actual hours worked rounded to the nearest hour.
2. Compute the actual purchase price per unit of materials, rounded to the nearest penny.

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Solution Summary

The solution explains the calculation of actual hours worked and actual purchase prices given the material and labor variances

Solution Preview

1. Direct labor quantity variance = (actual hours - standard hours) standard rate
9,800 U = (actual hours - ...

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