The standard number of hours that should have been worked for the output attained is 10,000 direct labor hours and the actual number of direct labor hours worked was 10,500. If the direct labor price variance was $10,500 unfavorable, and the standard rate of pay was $15 per direct labor hour, what was the actual rate of pay for direct labor?
A) $14 per direct labor hour
B) $12 per direct labor hour
C) $16 per direct labor hour
D) $15 per direct labor hour

Question

Quizplus · Accepted Answer

Direct labor price variance = (Actual rate - Standard rate) x Actual hours
-$10,500 = (Actual rate - $15) x 10,500
Actual rate = $16

The Standard Number of Hours That Should Have Been Worked