Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $25,000 unfavorable; Direct labor efficiency variance = $70,000 (?). The standard calls for 3.0 direct labor hours per unit of output at $28.00 per labor hour (SP). The standard direct labor hours allowed for the units manufactured (SQ) is 20 percent more than the total direct labor hours worked (AQ) in August.

What was the average direct labor hourly rate (AP) the Division paid in August, to two decimal places?
A) $24.00.
B) $26.00.
C) $28.00.
D) $30.00.
E) $31.25.

Question

Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $25,000 unfavorable; Direct labor efficiency variance = $70,000 (?) . The standard calls for 3.0 direct labor hours per unit of output at $28.00 per labor hour (SP) . The standard direct labor hours allowed for the units manufactured (SQ) is 20 percent more than the total direct labor hours worked (AQ) in August.

What was the average direct labor hourly rate (AP) the Division paid in August, to two decimal places?

What was the average direct labor hourly rate (AP) the Division paid in August, to two decimal places?
A) $24.00.
B) $26.00.
C) $28.00.
D) $30.00.
E) $31.25.

Quizplus · Accepted Answer

The Answer of Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $25,000 unfavorable; Direct labor efficiency variance = $70,000 (?). The standard calls for 3.0 direct labor hours per unit of output at $28.00 per labor hour (SP). The standard direct labor hours allowed for the units manufactured (SQ) is 20 percent more than the total direct labor hours worked (AQ) in August.

What was the average direct labor hourly rate (AP) the Division paid in August, to two decimal places?
A) $24.00.
B) $26.00.
C) $28.00.
D) $30.00.
E) $31.25.

Joe Malay Received the Following Report on the Division's Operation