Mandy Company Has the Following Information from Last Month What Was Mandy's Actual Direct Labor Rate Per Hour (AP)

question 134

Multiple Choice

Mandy Company has the following information from last month: $\begin{array}{lr}\text { Standard direct labor hours for units produced (SQ) } & 3,600 \\\text { Actual direct labor hours worked (AQ) } & 3,480 \\\text { Direct labor efficiency variance, favorable (F) } & \$ 5,760 \\\text { Total payroll } & \$ 187,920\end{array}$ What was Mandy's actual direct labor rate per hour (AP) , rounded to two decimal places?

• A) $43.20.
• B) $45.60.
• C) $48.00.
• D) $52.20.
• E) $54.00.

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Definitions:

In the Money

A term used in options trading indicating that the option has intrinsic value.

Call

An option contract giving the owner the right, but not the obligation, to buy a specified amount of an underlying asset at a set price within a specified time.

Positive Intrinsic Value

The condition where an option or other financial instrument has a market price below its calculated value, suggesting undervaluation.

In-the-Money

An option is considered in-the-money when it has intrinsic value, meaning that for a call option the market price of the asset is above the strike price, and for a put option, it's below the strike price.