Lucky Company's direct labor information for the month of February is as follows:
The actual direct labor rate per hour is:
A)$12.00.
B)$12.30.
C)$12.60.
D)$13.20.
E)$13.50.

Question

Lucky Company's direct labor information for the month of February is as follows: 
The actual direct labor rate per hour is:
A)$12.00. 
B)$12.30. 
C)$12.60. 
D)$13.20. 
E)$13.50.

Quizplus · Accepted Answer

The actual direct labor cost for the month is $80,640 (8,540 hours x $9.44). The total direct labor cost is comprised of both the direct labor rate per hour and the number of direct labor hours. To solve for the direct labor rate per hour:
Actual Direct Labor Cost / Actual Direct Labor Hours = Direct Labor Rate per Hour
$80,640 / 6,400 = $12.60. Therefore, the actual direct labor rate per hour is $12.60.

Lucky Company's Direct Labor Information for the Month of February