Question

Elliott Corporation makes and sells a single product. Last period the company's labor rate variance was $14,400 U. During the period, the company worked 36,000 actual direct labor-hours at an actual cost of $338,400. The standard labor rate for the product in dollars per hour is:

Answer 1

Answer:

B. $9

Explanation:

Based on the scenario being described within the question it can be said that the  standard labor rate for the product in dollars per hour is that of $9. This can be calculated using by subtracting the labor rate variance from the actual cost, and then dividing that amount by the actual-direct labor hours as so...

$338,400 - 14,400 = 324,000

AH X SR = 324,000/36,000 = $9

Making the total dollars per hour $9

Answer 2

Answer:

$9.00

Explanation:

Actual rate is calculated as

Direct labour cost ÷ Direct labour hours

= $338,400 ÷ 36,000 = $9.40

rate of labour variance = Actual hours × (Actual rate − Standard rate) $14,400 = 36,000 × ($9.40 − Standard rate) Standard rate = $9.00