Answer (D) is correct . The standard hours allowed equaled 3,000, and the labor efficiency variance was $1,870 unfavorable; that is, actual hours exceeded standard hours. The labor efficiency variance equals the standard rate ($8.50) times the excess hours. Given that the variance is $1,870, 220 excess hours ($1,870 ¡Â $8.50) must have been worked. Thus, 3,220 actual hours (3,000 standard + 220 excess) were worked.Answer (A) is incorrect because The 220 hour difference between AH and SH should not be subtracted from the standard hours allowed.
Answer (B) is incorrect because The excess hours should be determined using the standard, not the actual, rate per hour, and the result should be added to, not incorrectly subtracted from, standard hours allowed.
Answer (C) is incorrect because Excess hours should be determined using the standard, not the actual, rate per hour.
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The actual hours worked equaled
