What was the average direct labor hourly rate

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Question - Joe Malay received the following report on the Division's operation for the month of August: Direct labor rate variance = $32,000 unfavorable; Direct labor efficiency variance = $64,000 (?). The standard calls for 2 direct labor hours per unit of output at $20 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.

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

a. $27.00.

b. $18.00.

c. $22.00.

d. $23.25.

e. $29.00.

Reference no: EM132534127

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