Data on Goodman Company's direct-labor costs are given below: What was Goodman's actual direct-labor rate?
A)$3.60.
B)$3.80.
C)$4.00.
D)$5.80.

Question

Data on Goodman Company's direct-labor costs are given below:  What was Goodman's actual direct-labor rate?
A)$3.60. 
B)$3.80. 
C)$4.00. 
D)$5.80.

Quizplus · Accepted Answer

The actual direct-labor rate can be calculated by dividing the total direct-labor costs by the total direct-labor hours. Total direct-labor costs are $11,400 ($6,000 + $4,200 + $1,200), and total direct-labor hours are 3,000. Therefore, the actual direct-labor rate is $3.80 ($11,400 ÷ 3,000).

Data on Goodman Company's Direct-Labor Costs Are Given Below