The Actual Cost of Direct Labor Per Hour Is $14

question 157

Multiple Choice

The actual cost of direct labor per hour is $14.75.Two and one half standard direct labor hours are allowed per unit of finished goods.During the current period,2,700 units were produced using 6,500 direct labor hours.The direct labor efficiency variance is $2,500 favorable.Calculate the standard direct labor rate per hour.

• A)$14.75
• B)$10.00
• C)$36.88
• D)$10.80

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to a balance in the market.

Consumer Preference

The inclination of consumers toward certain products or services over others based on their characteristics, such as taste, quality, and price.

Equilibrium

An equilibrium in the market where demand matches supply, thereby stabilizing prices.

General Equilibrium

An economic condition where supply and demand are balanced across all markets in the economy, leading to an optimal distribution of resources.