Reference: 11-13
the Upton Company Employs a Standard Costing System

Reference: 11-13
The Upton Company employs a standard costing system in which variable overhead is assigned to production on the basis of direct labour hours. Data for the month of February include the following:
Variable manufacturing overhead cost incurred: $48,700
Total variable overhead variance: $300 F
Standard hours allowed for actual production: 7,000
Actual direct labour hours worked: 6,840
-For the month of April, Thorp Co.'s records disclosed the following data relating to direct labour: $$\begin{array} { | l | l | l | } \hline \text { Actual cost } & \$ 10,000 & \\\hline \text { Rate variance } & \$ 1,000 & \text { favourable } \\\hline \text { Efficiency variance } & \$ 1,500 & \text { unfavourable } \\\hline\end{array}$$ For the month of April, actual direct labour hours amounted to 2,000. In April, Thorp's standard direct labour rate per hour was:

A) $4.50.
B) $5.50.
C) $4.75.
D) $5.00.