## Question

###### Penny Company manufactures only one product and uses a standard cost system. The following information is from Penny’s r...

Penny Company manufactures only one product and uses a standard cost system. The following information is from Penny’s records for May:

Direct labor rate variance | $15,000 | favorable |

Direct labor time variance | $31,200 | unfavorable |

Standard hours per unit produced | 2.00 | |

Standard rate per hour | $26 |

During May, the company used 12.50% more hours than the standard allowed.

**A.** What were the total standard hours allowed for the units manufactured during the month?

standard hours

**B.** What were the actual hours worked?

actual hours

**C.** How many actual units were produced during May?

units produced

## Answers

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