The actual direct labor rate per hour

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Reference no: EM131208014

The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August:

• Actual cost of direct material purchased and used: $103,525

• Material price variance: $2,525 unfavorable

• Total materials variance: $20,525 unfavorable

• Standard cost per pound of material: $4

• Standard cost per direct labor-hour: $8

• Actual direct labor-hours: 12,050 hours

• Labor efficiency variance: $3,200 favorable

• Standard number of direct labor-hours per unit of Roff: 3 hours

• Total labor variance: $4,030 unfavorable

The actual direct labor rate per hour was:

A. $8.60

B. $4.10

C. $8.00

D. $24.00

Reference no: EM131208014

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