Information on Jayhawk's Direct Labor Costs for the Month of August

question 64

Multiple Choice

Information on Jayhawk's direct labor costs for the month of August is as follows: $\begin{array}{lr}\text { Actual rate } & \$ 10 \\\text { Standard hours } & 11,000 \\\text { Actual hours } & 10,000 \\\text { Direct labor price variance\_unfavorable } & \$ 4,000\end{array}$ What was the standard rate for August?

• A) $9.96
• B) $9.60
• C) $10.40
• D) $10.04

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Definitions:

Discount Rate

A percentage used to calculate the present value of future cash flows or investments.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, discounting future amounts to their present values.

Annual Rate

Typically refers to the interest rate for a whole year, often applied in terms of loans, investments, or savings.

Invests

The act of allocating resources, usually money, with the expectation of generating an income or profit.