The Standard Number of Hours That Should Have Been Worked

question 47

Multiple Choice

The standard number of hours that should have been worked for the output attained is 10000 direct labor hours and the actual number of direct labor hours worked was 10500. If the direct labor price variance was $10500 unfavorable and the standard rate of pay was $12 per direct labor hour what was the actual rate of pay for direct labor?

• A) $11 per direct labor hour
• B) $9 per direct labor hour
• C) $13 per direct labor hour
• D) $12 per direct labor hour

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Definitions:

Calculate

A mathematical determination of one or more quantities, equations, or properties.

Period

A length of time in financial reporting, typically referring to a fiscal quarter or year, over which transactions are recorded and analyzed.

Schedule of Cost of Goods Manufactured

A detailed report showing the total production costs incurred by a company to produce goods during a specific period.

Cost of Goods Sold

The expenses directly associated with manufacturing the products that a company sells.