Question

6 of 25 The standard cost of direct labor per hour is $14.50. Three standard direct labor hours are alloued per unit of finished goods. During the current period, 50 units were produced using 1,450 direct labor hours. The direct labor rate variance is $1,900 unfavorable. Calculate the actual cost of direct labor per hour. O 514.50 O $1.31 O S15.81 Three standard direct la unit of fin period, so 450 drect hours. The S29.00 riance is s Calculate

Answer 1

Dear student, only one question is allowed at a time. I am answering the first question

Direct labor rate variance

= Actual hours x Actual rate – Actual hours x Standard rate

The above variance will be unfavourable (positive value of above calculation) when the actual rate is more than the standard rate which means labor is paid at higher rate than the standard rate

So, $1,900 = 1,450 x Actual rate – 1,450 x $14.50

So, 1,450 x Actual rate = $1,900 + 1,450 x $14.50

So, Actual rate = $22,925 / 1,450

= $15.81

So, as per above calculations, option C is the correct option