The Standard Cost of Direct Labor Per Hour Is $12

question 72

Multiple Choice

The standard cost of direct labor per hour is $12.50.One and one half standard direct labor hours are allowed per unit of finished goods.During the current period,560 units were produced using 1,250 direct labor hours.The direct labor rate variance is $1,000 unfavorable.Calculate the actual cost of direct labor per hour.

• A)$12.50
• B)$32.80
• C)$13.30
• D)$18.75

---

Definitions:

Market Segment

A collection of individuals, groups, or organizations who share one or more characteristics and thus have relatively similar product needs and desires.

Small Businesses

Companies with limited revenue and number of employees, falling below certain statutory limits.

Downsizing

The reduction of a company’s workforce to lower expenses, often involving layoffs of employees as a measure to sustain or improve the business.

Organizational Tasks

Activities and responsibilities allocated within an organization to achieve its objectives and maintain its operations.