High Fliers Company Produces Model Airplanes

question 100

Multiple Choice

High Fliers Company produces model airplanes. During the month of November, it produced 2,000 planes. The actual labor hours were 7 hours per plane. Its standard labor hours are 10 hours per plane. The standard labor rate is $11 per hour. At the end of November, High Fliers found that it had a favorable labor rate variance of $10,500.
-Refer to Figure 10-4. What was High Fliers' actual cost per labor hour?

• A) $12.75
• B) $11.50
• C) $10.50
• D) $10.25

---

Definitions:

Production Manager

An individual responsible for overseeing the production process, ensuring efficiency, meeting production targets, and maintaining quality standards.

Labor Rate Variance

The difference between the actual labor cost incurred and the standard labor cost for the actual hours worked.

Hourly Rates

The amount charged or paid for each hour of labor or service.

Labor Efficiency Variance

The difference between the expected amount of labor hours to complete a task and the actual hours used, indicating efficiency in labor use.