The direct labor (DL) price variance for Vellux Manufacturers is $15,600 unfavorable. The standard number of hours worked was 10,000 and the standard rate per hour for direct labor was $14. If the actual direct labor hours were 12,000, what was the actual rate per direct labor hour?
A) $7.80
B) $12.70
C)$15.30
D) $17.50

Question

Quizplus · Accepted Answer

DM Price Variance, $15,600 U = (AQ x AP) - (AQ x SP) = (12,000 x AP) - (12,000 x $14); AP = $15.30

The Direct Labor (DL) Price Variance for Vellux Manufacturers Is