Calculate the actual direct labor rate paid per hour

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Question - Four Seasons Industries has established direct labor performance standards for its maintenance and repair shop. However, some of the labor records were destroyed during a recent fire. The actual hours worked during August were 2,500, and the total direct labor budget variance was $1,300 unfavorable. The standard labor rate was $16.00 per hour, but recent resignations allowed the firm to hire lower-paid replacement workers for some jobs, and this produced a favorable rate variance of $3,500 for August.

Required -

-Calculate the actual direct labor rate paid per hour during August.

-Calculate the dollar amount of the direct labor efficiency variance for August.

-Calculate the standard direct labor hours allowed for the actual level of activity during August.

Reference no: EM133068462

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