Al Fabricating Company uses a standard cost system. The following information pertains to 2017:
$$\begin{array} { l r }
\text { Actual labor hours used } & 5,100 \text { hours } \
\text { Total standard labor hours allowed } & 4,000 \text { hours } \
\text { Actual labor rate } & \$ 12 \text { per hour } \
\text { Total flexible budget labor variance } & \$ 22,000(\mathrm{U})
\end{array}$$ Calculate Al's standard labor rate for 2017.

Question

Al Fabricating Company uses a standard cost system. The following information pertains to 2017:
 $$\begin{array} { l r } 
\text { Actual labor hours used } & 5,100 \text { hours } \
\text { Total standard labor hours allowed } & 4,000 \text { hours } \
\text { Actual labor rate } & \$ 12 \text { per hour } \
\text { Total flexible budget labor variance } & \$ 22,000(\mathrm{U})
\end{array}$$ Calculate Al's standard labor rate for 2017.

Quizplus · Accepted Answer

The Answer of Al Fabricating Company uses a standard cost system. The following information pertains to 2017:
 $$\begin{array} { l r } 
\text { Actual labor hours used } & 5,100 \text { hours } \
\text { Total standard labor hours allowed } & 4,000 \text { hours } \
\text { Actual labor rate } & \$ 12 \text { per hour } \
\text { Total flexible budget labor variance } & \$ 22,000(\mathrm{U})
\end{array}$$ Calculate Al's standard labor rate for 2017.

Al Fabricating Company Uses a Standard Cost System Calculate Al's Standard Labor Rate for 2017