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Question - El Company's direct labor costs are presented as follows:
Standard direct labor hours 30,000
Actual direct labor hours 29,000
Direct labor efficiency variance, favorable P 4,000
Direct labor rate variance, favorable P 5,800
Total payroll P 100,200
Required -
1. What was El's standard labor rate?
a. P3.54
b. P4.00
c. P3.80
d. P5.80
2. Using the same information, what was El's actual direct labor rate?
a. P3.60
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