Alkyl Fliers Company Produces Model Airplanes

question 208

Multiple Choice

Alkyl Fliers Company produces model airplanes.During the month of November, it produced 3,000 planes.The actual labor hours were 5 hours per plane.Its standard labor hours are 10 hours per plane.The standard labor rate is $8 per hour.At the end of November, Alkyl Fliers found that it had a favorable labor rate variance of $12,000. What was Alkyl Fliers' actual cost per labor hour?

• A) $12.75
• B) $7.60
• C) $9.50
• D) $7.20

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