Mickles Ltd.
Mickles Ltd. uses a standard cost system. In June, Mickles’ direct labor efficiency variance was $1,470 U and its direct labor rate variance was $825 F. Mickles manufactured 460 batches of product in June. Actual direct labor hours in June were 980 hours. Each batch calls for two standard direct labor hours per batch.
Required:
Calculate the standard direct labor wage rate used by Mickles in computing its direct labor variances in June.
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