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Calculate the number of labor hours required

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Question - The case discusses two events during the year that impacted the use of labor (and therefore the unfavorable flexible budget variance for direct labor): the 50,000 unit sales to the catalog company and the storm.

Calculate the following: a. Assume that the special order of 50,000 toys was produced at the standard amount of time per toy but all of those hours required an overtime premium. Calculate the number of labor hours required and the amount of overtime paid. Deduct this overtime premium from the total ?ex-budget variance calculated in part 3 to determine the unexplained portion of labor variance.

Reference no: EM133160967

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