The Standard Cost of Direct Labour Per Hour Is $10

question 179

Multiple Choice

The standard cost of direct labour per hour is $10.00. Two standard direct labour hours are allowed per finished good. During the current period, 512 finished goods were produced using 1,000 direct labour hours. The direct labour price variance is $100, unfavourable. Calculate the actual cost of direct labour per hour.

• A) $2.40
• B) $10.00
• C) $10.10
• D) $20.00

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Definitions:

Variable Costs

Costs that vary directly with the level of production or volume of output.