During October,10,000 Direct Labour Hours Were Worked at a Standard

question 40

Multiple Choice

During October,10,000 direct labour hours were worked at a standard cost of $10 per hour.If the direct labour rate variance for October was $4,000 unfavourable,what would be the actual cost per direct labour hour?

• A)$9.20
• B)$9.60
• C)$10.00
• D)$10.40

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Definitions:

Indirect Pay

Employee compensation that includes non-monetary benefits such as health insurance, retirement plans, and paid time off, rather than direct cash payments.

Hour Worked

A measurement of labor contributing to the production of goods and services, calculated as the amount of time an employee spends on work activities.

Wage

The fixed regular payment, typically paid on a daily or weekly basis, earned by an employee.

Salary

Regular compensation paid to an employee, usually expressed as an annual sum and paid in monthly or biweekly installments.