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:

Poor Handling

Inadequate or careless management of items, which often results in damage or loss.

Spoiled

Usually refers to goods or materials that have become unfit for use or consumption due to damage, deterioration, or passing their expiration dates.

Unfit for Use

Refers to a condition where an item, equipment, or facility is not suitable or safe for its intended purpose.

Material Handling Expenses

Costs incurred in the process of moving, protecting, storing, and controlling materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal.