Data on Gantry Company's Direct-Labor Costs Are Given Below What Was Gantry's Actual Direct-Labor Rate?
A) $3

question 52

Multiple Choice

Data on Gantry Company's direct-labor costs are given below:
$$\begin{array} { | l | r | } \hline \text { Standard direct-tabor hours } & 30,000 \\\hline \text { Actual direct-labor hours } & 29,000 \\\hline \text { Direct-labor effic iency variance-favorable } & \$ 4,000 \\\hline \text { Direct-labor rate variance-favorable } & \$ 5,800 \\\hline \text { Total direct labor payroll } & \$ 110,200 \\\hline\end{array}$$ What was Gantry's actual direct-labor rate?

• A) $3.60.
• B) $3.80.
• C) $4.00.
• D) $5.80.

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Definitions:

Working Capital

The gap between a business's current assets versus its current liabilities, reflecting its short-term solvency and efficiency in operations.

Investment Project

An endeavor in which resources are invested with the goal of generating future returns, typically involving financial, time, or other forms of resources.

End of Project

The point in time when all objectives of a project have been achieved and all deliverables have been completed.

Operating Costs

Expenses associated with the day-to-day operation of a business, excluding financing costs and taxes.