The Actual Cost of Direct Labor Per Hour Is $16

question 94

Multiple Choice

The actual cost of direct labor per hour is $16.00. Two and one half standard direct labor hours are allowed per unit of finished goods. During the current period, 2700 units were produced using 6500 direct labor hours. The direct labor efficiency variance is $3100 favorable. Calculate the standard direct labor rate per hour.

• A)$16.00
• B)$12.40
• C)$1.15
• D)$2.18

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Definitions:

Identifiable Efforts

Contributions by individuals that can be clearly recognized and attributed to them within a group setting.

Identifiability

The extent to which individual members within a group can be recognized or distinguished based on their specific contributions or characteristics.

Performance Reviews

Evaluations conducted periodically to assess an employee's job performance, strengths, and areas for improvement.

Social Facilitation

The tendency for individuals to perform differently when in the presence of others, typically improving on simple tasks and doing poorly on complex tasks.