Data on Gantry Company's Direct Labor Costs Are Given Below

question 123

Multiple Choice

Data on Gantry Company's direct labor costs are given below:
$\begin{array}{lrr} \text { Standard direct-labor hours } &30,000\\ \text {Actual direct-labor hour's } &29,000\\ \text { Direct-labor efficiency variance-favorable } &\$4,000\\ \text { Direct-labor rate variance-favorable } &\$5,800\\ \text { Total direct labor payroll } &\$110,200\\\end{array}$

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What was Gantry's standard direct labor rate?

• A) $3.54
• B) $3.80
• C) $4.00
• D) $5.80

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Definitions:

Human Capital

The economic value of a worker's experience and skills, including education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

Utilitarian Justice

A principle in ethics and economics that a decision should be made so as to maximize overall happiness and reduce suffering among all people affected by the decision.

John Stuart Mill

A British philosopher and economist, known for his contributions to liberalism, utilitarianism, and political economy.

Income Redistribution

The policy or practice of adjusting the distribution of income in a society to achieve social or economic objectives.