Question: Problem 9.31 (Algorithmic) Solving for Unknowns Misterio Company uses a standard costing system. During the past quarter, the following variances were computed: Variable overhead efficiency

Problem 9.31 (Algorithmic) Solving for Unknowns

Misterio Company uses a standard costing system. During the past quarter, the following variances were computed:

Variable overhead efficiency variance	$ 16,480 U
Direct labor efficiency variance	74,160 U
Direct labor rate variance	17,304 U

Misterio applies variable overhead using a standard rate of $2 per direct labor hour allowed. Two direct labor hours are allowed per unit produced. (Only one type of product is manufactured.) During the quarter, Misterio used 20 percent more direct labor hours than should have been used.

Required:

1. What were the actual direct labor hours worked? hours

What are the total hours allowed? hours

2. What is the standard hourly rate for direct labor? $ per hour

What is the actual hourly rate? Round your answer to the nearest cent. $ per hour

3. How many actual units were produced? units

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