Solving for Unknowns
Marvel Company uses a standard cost system. During the past quarter, the following variances were computed:
Marvel applies variable overhead using a standard rate of $2 per direct labor hour allowed. Four direct labor hours are allowed per produced. (Only one type of product is manufactured.) During the quarter, Marvel used 15% more direct labor hours then should have been used.
1. What were the actual direct labor hours worked? The total hours allowed?