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The Standard Number of Hours That Should Have Been Worked

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The standard number of hours that should have been worked for the output attained is 6000 direct labor hours and the actual number of direct labor hours worked was 6300. If the direct labor price variance was $3150 unfavorable and the standard rate of pay was $9 per direct labor hour what was the actual rate of pay for direct labor?

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Definitions:

Wage Rate

The amount of money paid to an employee per unit of time or per task performed, often expressed as an hourly or piece rate.

Total Product

The overall quantity of output that a firm produces, usually within a given period.

Farmer

An individual involved in agricultural activities aimed at producing food, feed, fiber, and other goods by the systematic raising of domesticated plants and animals.

Labor Demand Curve

A graphic representation showing the relationship between the quantity of labor demanded by employers and the wage rate.

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